Micro-cap companies are an important part of the US economy and play a vital role in providing opportunities for investors. These companies have a market capitalization between $50 million and $300 million, which makes them smaller than large corporations, but still larger than nano caps. Micro-cap companies offer investors a chance to get in on the ground floor of new businesses, and to participate in the growth potential of these firms. Many micro-cap firms are dynamic and innovative, making them an exciting investment opportunity.There are some risks associated with investing in micro-caps, as these companies tend to be more volatile than their larger counterparts. However, for those willing to take on some risk, micro-caps can provide the potential for significant rewards. Due diligence is essential when considering any investment; however it is especially important with smaller firms that may not have established track records or extensive financial resources.
