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Companies whose stock value is under $100 million are usually referred to as micro-cap, and called
small-cap if the total value of their stock is between $100 million and $1 billion. These are
generally going to be newer companies without a solid track record, or maybe older companies that
have fallen from grace because they are headed towards bankruptcy.
Historically, small-cap stocks, as a return on your investment, have outperformed large-cap stocks,
not because a bunch of cheap, small companies are a better investment than big companies, but
because almost all big companies were small when they first sold stock.
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