Sep 02 , 2024

Benefit of investing in small-cap stocks

By True Scoop

Potential for growth- Small businesses offer greater growth potential, which implies investors will be in great profit.

Variety of business- It is not always that small businesses are new. Some are already developed and leads of a range of investment opportunities.

Less Popular- This means that the small businesses are less known and the shares can be frequently sold at a lower price and can yield a healthy return.

High volatility- They are quite erratic since they can quickly fall in value during a bear market.

Liquidity- Because of low trading volume, these stocks are least liquid among large, medium, and small-sized corporations.

High potential return- In a favourable market they could turn into multi-baggers that produce a return of above 100%.

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