Today's financial term is: ankle biters. Ankle biters are stocks with market capitalizations of less than $500 million, making ankle biters the small fry of small-cap stocks.
In comparison:
- small-cap stocks have market capitalizations between $300 million and $2 billion.
- mid-cap stocks have market capitalizations between $2 billion and $10 billion.
- large-cap stocks have market capitalizations of greater than $10 billion.
Because ankle biters (and small-cap stocks in general) represent smaller companies, there's a lot of growth potential as the companies look to expand. This can make ankle biters a profitable investment, although ankle biters and other small-cap stocks are more volatile (higher risk) than larger cap stocks.
For more information on ankle biters and small-cap stocks, visit fool.com, businessweek.com, and kiplinger.com. Also check out forbes.com's list of "trustworthy" small cap stocks.
Finally, before you get started in any kind of investing, read the brass article Investing Information.
--Jens
Post new comment