However, they can list on the big boards, but there are more lenient standards for these companies. It's a win-win for all.It would seem that while the rest of the stock market focuses on value stocks or medium to large companies, there are a few enterprising investors who primarily focus on small cap shares or micro cap stocks. There is a world of opportunities with these companies, and are worth a look. OTCSHUB There is actually a company that helps companies and investors connect--http://otcshub.com/. So these companies must choose between running their businesses or looking for investors. . Small to Micro Companies On the other side of the token, companies just getting started may find it difficult to find enough investors to stay afloat. Unfortunately, these may be just the exceptions, but they do happen enough to draw in several investors.
If there could be someone do look for investors for them, they would be set. But, unlike the mega-corps, small or micro companies have a chance for an explosive growth, earning large sums of money for those who invest in these companies. Availability Micro-cap stocks, as well as small cap shares, are available as "Pink Sheet" stocks or OTCBB, an electronic bulletin board that lists over the counter type of stocks. Small-cap stock or even micro cap stock comes from small or micro companies with a market capitalization of less than $2 billion. Risk and China PTFE Tubing Suppliers Rewards Small companies usually have much more risk than larger companies do, but they also have larger rewards when they have a sudden burst of growth. They identify potential investors with like-minded companies and help them meet. Not all companies do this, but finding the rare gem in a sea of bad companies has its own rewards. Some of the risks involved with small or micro cap stocks include bankruptcy, going out of business, or illegal business practices.
Many investors just do not have the time to do this, so several small cap shares go unnoticed in the market and the rewards go unclaimed by these investors. They do not have the advantage of media coverage because they are so small, and they do not have a large marketing department to help get the word out very quickly to attract investors. Many brokers do not bother with these, because they are small companies, and they are more risky than larger companies, known as "value stocks".
They are not usually traded on the NASDAQ because they need a certain amount of net assets before they can list. If a company experiences large and sudden growth, investors reap these rewards in a very large rate of returns, making them wealthy almost overnight. If only there was a service to help investors identify the best small or micro cap stocks. Full Time Job Because of how long it can take to find that rare gem, it really becomes a full time job to search through all the small or micro cap stock companies. But this is not for everyone because of the risk involved. While this may seem like a large amount, it is small compared to the mega-corporations on the market.