A Step-by-Step Guide to Picking the Best Small Cap Stocks
Small caps are a very exciting and highly profitable area of the market to invest in.
But finding the best companies among the ocean of small cap stocks can be like searching for a needle in a haystack.
Today we’re going to cover four important questions about finding the best small cap stocks:
- What are small cap stocks?
- What should you know about investing in small cap stocks?
- Which small cap stocks perform best?
- How do you find the best small cap stocks to buy? (A step-by-step guide)
Let’s dig into exactly what small caps are and how to find the best among them.
What Are Small Cap Stocks?
What exactly is a “small cap stock”?
While we often refer to “small cap stocks” as small companies with a market cap of less than $2B, there are actually a few different tiers of small companies:
The true small cap stock definition is companies with a market cap between $300M — $2B. There are currently 1,393 small cap stocks trading in the U.S. (excluding OTC / pink sheet stocks).
Examples of small cap stocks include well known companies such as The Cheesecake…
