small cap stock investing
What does "small towns USA Cap" means?
And how is invested in it?
A definition generally accepted is a stock with a market capitalization of less than $ 2 billion. Just goes to show how bad inflation really is. $ 2 to 10 is considered mid-caps. More than $ 10 for large caps. There is also a category known as micro cap around less than $ 500 million. There are all kinds of options to invest in small capitalization stocks. There are mutual funds that specialize in them. One of my favorites is PENNX. There are also index funds that you you can buy on the basis of generally accepted indices such the small cap Russell 2000 index. IWM is the ticker. You can also invest in companies Individual small caps. This helps to have a screening tool to classify the small caps. Yahoo has a fine. If you do not like the cap limit is 2 billion U.S. dollars can be adjusted up or down with the selection tool. You can also filter out most of the dogs by setting limits of profitability. Here is a link to Yahoo detection tool. Http://screen.finance.yahoo.com/newscreener.html Yahoo lists 130 companies from small capitalization that perform better than 15% of assets. That would be a good start for you. Unless something of a risk taker or to have a sizeable portfolio, you improve your opportunity to invest in small cap mutual fund rather than individual small-cap stocks. They come with a large amount of individual risk.
AGORACOM Small Cap TV – December 17, 2009
