What is a small cap stock?

PUBLISHED Sep 23, 2022, 1:39:00 AM        SHARE

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A small-cap stock is a company whose valuation is typically less than $1 Billion. Small-cap stocks have the potential to be bought out by larger companies due to their smaller total valuation. Small-cap stocks have a higher probability of a large return; however, this opportunity is mitigated by higher uncertainty, risk, and volatility.



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