Equity Investing

Micro-Cap Stock

Definition

What is Micro-Cap Stock?

A share in a company with a very small market capitalisation.

Example in practice

A micro-cap share may have limited analyst coverage and low trading liquidity.

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A share that usually carries voting rights and a residual claim on a company's profits and assets.

The standard ownership share in a company, generally equivalent to common stock.

A class of share that usually has priority over ordinary shares for dividends and liquidation proceeds.

The first public sale of a private company's shares, after which the shares may trade on an exchange.

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