What exactly are micro-cap stocks?
Many analysts consider a stock with a market capitalization (the number of shares of stock outstanding multiplied by the price of the stock) of less than $500 million to be a small-cap stock and a stock with a market capitalization of less than $100 million to be a micro-cap stock. These numbers change for mutual funds, however, because of their enormous buying power. A small- and micro-cap stock fund would probably consider any stock with a market capitalization of under $1 billion to be a small- and micro-cap stock.
