Micro-cap

A micro-cap stock is a company with a market capitalization (total value of all its shares) between roughly $50 million and $300 million. You'll mostly encounter these on smaller exchanges or over-the-counter markets, and they're riskier than larger companies because they're less established and get less analyst attention. They matter because they can offer huge growth potential—but also huge losses. For example, a small biotech startup or a regional retailer might be micro-cap stocks. These companies often lack the financial cushion of bigger firms, so they're best suited for investors who can handle volatility and do serious homework before buying.