Micro-Cap Stock
Definition
What is Micro-Cap Stock?
A share in a company with a very small market capitalisationThe market value of a company's outstanding shares, calculated as share price multiplied by shares outstanding..
Example in practice
How This Looks in Practice
A micro-cap share may have limited analyst coverage and low trading liquidityThe ease and speed with which an investment can be converted into cash without a major price concession..
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Related Terms
Common Stock
A share that usually carries voting rights and a residual claim on a company's profits and assets.
Equity InvestingOrdinary Share
The standard ownership share in a company, generally equivalent to common stock.
Equity InvestingPreferred Stock
A class of share that usually has priority over ordinary shares for dividends and liquidation proceeds.
Equity Capital MarketsInitial Public Offering
The first public sale of a private company's shares, after which the shares may trade on an exchange.