Benefits and Risks Associated With Micro Cap Investments
The stock market is surely not for the faint-hearted; it carries a huge amount of risk. Depending on your risk appetite, you should think of investing or staying away from it. While the risk exists, it also means huge returns. You may feel overwhelmed with these types of investments, however, once you start appreciating the market and understand how it works, you can make a living of it. Types of Stocks There are primarily four types of stocks, we list them in order of increasing risk. n Large Cap. n Mid Cap. n Small Cap. n Micro Cap. Micro Cap Investing For this blog, we put all the attention on micro caps, which is the riskiest of them all. We begin with telling you why should you invest in micro caps, or to rephrase the question: What are the benefits associated with micro cap stock investments? Pros On a superficial level, it may seem like investing in large caps makes more sense as you are i...