Small Cap

The term "small cap" is typically used to refer to publicly traded companies with a market capitalization of less than $2 billion. In comparison, mid cap companies have a market cap of between $2 billion and $10 billion, and large cap companies have a market cap of $10 billion or more. Small cap stocks are generally considered to be riskier than large cap stocks because the companies they represent are typically younger, less established, and have a shorter track record of stable earnings. However, they may also offer more potential for growth compared to large cap stocks.

Small and Mid-Cap Securities Risks:

The stocks of small and medium capitalization companies involve substantial risk. These companies may have limited product lines, markets or financial resources, and they may be dependent on a limited management group. Stocks of these companies may be subject to more abrupt or erratic market movements than those of larger, more established companies or the market averages in general.