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Worth the Risk? An Overview of Investing
in Small & Microcap Stocks.
The mention of investing in small & microcap stocks may initially raise some red flags. However, one must remember that any investment carries a great deal of risk and uncertainty, but the prepared investor will do the research and make a sound decision for their portfolio. A smallcap stock typically has a market cap of $300 million to $2 billion, while a microcap company falls in the $50 million to $300 million range. Although these smaller-scaled companies are viewed as young and volatile, they also bring many potential investment benefits.