The Small-Cap Investor equips readers with the information and tools necessary to invest in small-cap stocks. By definition, small-cap stocks have a small market capitalization (the number of shares of stock outstanding multiplied bythe price per share, relative to other publicly traded companies). Small-cap companies are commonly defined as those companies with market capitalization below $1.5 billion. It is often in these undiscovered stocks, overlooked by Wall Street analysts and the investment media, that the greatest upside lies. A good small cap is often a young company experiencing fast growth, since its rate of growth on a percentage basis will almost always be faster than when it becomes a more mature company. But some gems are hidden among older companies whose shares fell out of favor when the company ran into trouble, but the company is now experiencing a comeback. This book explains the specific strategies that investors need to use to successfully play the small-cap profit game. Since small-cap stocks are intrinsically more volatile, extra care must be taken to examine the fundamentals of these companies. The volatility stems from the relative illiquidity of the shares and occurs in small caps because there are simply fewer shares available to buy or sell on the open market. For the savvy and well-researched investor, this can lead to quick and sizable gains, as large price fluctuations can be triggered by the smallest piece of information.
- ISBN: 978-0-470-40526-0
- Editorial: John Wiley & Sons
- Encuadernacion: Cartoné
- Páginas: 192
- Fecha Publicación: 16/09/2009
- Nº Volúmenes: 1
- Idioma: Inglés