Nano Cap
Categories: Investing
Okay, first imagine a tiny knit cap on top of a nano-byte's head. Now replace that head with a stock. And get read of the cap. Now you have a nano cap stock.
"Nano," as in small. Not something Mork said. Most stocks' underlying companies have a size rating that is loose. Like, GOOG and AMZN and FB are enormous, $500 billion-plus valued companies, so they are mega caps. A mid-cap name might be something worth, eh, $25 billion in market cap. And a small cap stock might be something valued around $5 billion. So a nano cap is a teeny tiny company, valued for a very small amount, like $83 million or something in that zone. Nano caps are so small that, oftentimes, professional investors don't even bother looking at them, because the pros can only put such a small amount of money into them that it's not worth their time. Then the valuations fall even further, and sometimes there are serious bargains to be had in thise teeny-tiny companies for retail investors.
So hunt carefully...but hunt.