Stocks with a very small market capitalization. Small caps definition varies but generally it is a company with a market capitalization between $300 million and $2 billion.
The biggest advantage of investing in small-cap stocks is the opportunity to beat institutional investors. Most mutual funds have restrictions restricting them from buying stock in a small cap stock. Some mutual funds would not be able to give the small cap a meaningful position in the fund. To overcome these limitations, the fund would usually have to file with the SEC, which means tipping its hand and inflating the previously attractive price.
Kraft Foods Puts Deep Cuts On Expenses And Jobs!
