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Should You Invest in Small-Cap Stocks?

Should You Invest in Small-Cap Stocks?

You can find a company's total valuation, or market capitalization, by multiplying its stock price by its number of outstanding shares. For example, if a company's share price is $100 and it has 1 million outstanding shares, its market cap is $100 million. A small-cap company has a market cap of between $300 million and $2 billion, a mid-cap's is $2 billion to $10 billion, and a large-cap's is more than $10 billion.