Micro-Cap Mutual Funds: Searching for the Future Giants
by John Markese
The mutual funds that concentrate in the smallest stocks, often called either micro-cap stocks or emerging stocks, often provide entry to an interesting and rewarding market segment.
The smallest stocks by market capitalization—market price per share of common stock times the number of shares outstanding—are probably not as small as you would think. They are all listed on the Nasdaq, American or New York Stock Exchange and most have market caps of greater than $200 million. Why even consider this investment niche?
New products, services, and technologies often emerge from small companies, although the largest companies can do the same. But with small companies, the promise of the concept is a pure play, not just one idea in a very large stable where individual success can be easily lost when all the numbers are tallied.
To read more, please become an AAII Registered User or CLICK HERE.
