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Closed-End Fund Market Commentaries


A Snapshot of Micro-Cap Stocks vs. Small-Cap Stocks

Nov 1, 2016
Click here to access A Snapshot of Micro-Cap Stocks vs. Small-Cap Stocks

View from the Observation Deck

1. While there is no official set of parameters that define a micro-capitalization (micro-cap) stock,the U.S. Securities and Exchange Commission (SEC) defines them as companies with a market value of less than $250 or $300 million. Some money managers may stretch it to the $1 billion mark or so in order to expand the universe of stocks and/or increase liquidity, in our opinion.
2. As of 2015,there were over 20,000 publicly traded companies and more than 60% of them were micro-caps, according to The MicroCap Conference, which defines a micro-cap company as one that is valued at less than $500 million. Micro-caps account for less than 3% of total equity market capitalization.




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