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 big growth potential—but also big losses. For example, a startup biotech company worth $150 million might be a micro-cap, while a household-name retailer worth billions wouldn't be. These stocks are thinly traded, meaning fewer buyers and sellers exist, so prices can swing wildly on small news.