The stock market can be a daunting and complex world for inexperienced investors. Many may feel overwhelmed by the hundreds of options, from well-known blue-chip companies to lesser-known small-cap stocks. While larger, established companies often dominate headlines and garner more attention from investors, the potential for growth in small-cap stocks should be noticed.
These budding companies have immense potential to grow their market share and provide significant returns on investments. However, with these opportunities come risks that require careful consideration before diving into small-cap investing. This article will explore the opportunities and risks associated with investing in small-cap stocks and how they can fit into your investment portfolio.
Small-cap stocks are typically defined as companies with a market capitalisation of between $300 million and $2 billion. These companies are often in the early stages of their growth cycle, with much room …Continue reading