Microcap Stock

The term "microcap stock" applies to companies with low or "micro" capitalizations, meaning the total value of the company's stock. Microcap companies typically have limited assets. For example, in cases where the SEC suspended trading in microcap stocks, the average company had only $6 million in net tangible assets — and nearly half had less than $1.25 million. Microcap stocks tend to be low priced and trade in low volumes.

To learn more about microcap stock, including how to find information, what "red flags" to consider, and where to turn for help, you should read Microcap Stock: A Guide for Investors.