Micro Cap

Micro Cap - Micro Cap is a company operating under two hundred fifty million dollars. The term microcap stock applies to companies with low or ?micro? capitalizations, meaning the total value of the company or corporation's stock. Microcap companies classically have limited assets. For example, in cases where the Security and Exchange Commission suspended trading in microcap stocks, the average company had only six million dollars in net tangible assets. It clearly showed nearly half had less than one million two hundred fifty thousand bucks. Microcap stocks tend to price lower and trade lower in volume. The reliable information fares scarce among investors.