When interest rates are low, small-cap stocks begin to shine and outpace larger companies in value. These stocks are stocks with a market capitalization between $300 million and $3 billion.
Small-cap stocks are usually considered to be stocks with market capitalizations somewhere between $250 million and $2.5 billion. They are the world’s potential up-and-coming companies.
The index weights selected holdings by float-adjusted market cap, which promotes diversification and minimizes turnover. Small companies tend to be more volatile than their larger counterparts but ...
Of course, not every small-cap company becomes a giant. Investing in small companies can be rewarding, but it also comes with risks that investors need to understand. Here's a close look at small ...