Small-Cap Stocks

Small-cap stocks are stocks of companies with relatively small market values. In simple terms, small-cap stocks are shares of smaller public companies. Small-cap stocks are important because they can offer strong growth potential, but they can also be more volatile and risky than large-cap stocks. They may be more sensitive to interest rates, credit conditions, and economic slowdowns. For example, a smaller regional company listed on the stock market may be considered a small-cap stock. Small-cap stocks are not always new companies. Some small-cap companies have been around for years but remain smaller in market value.