In terms of investment opportunities, micro cap investing can seem pretty tricky and complicated — but once you break it down into a few simple numbers, this industry is a bit easier to understand! Take a look at the statistics below for a quick guide to microcap investing, the U.S. stock market in general, and a glimpse at how this industry works.
$50 million to $300 million: This amount of money refers to stock market values of public companies in the U.S. For a company to be considered a micro cap investment, it must have a market capitalization between $50 million and $300 million.
> $50 million: Any market capitalization rates below $50 million are called nano equities rather than micro cap equities.
$5 : This is the cut-off maximum amount of money for a penny stock. Although penny stocks typically aren’t considered great investment opportunities, many newbie investors may find that this is a good way to start learning about the industry and start using stock market research tools.
34%: The percentage of the global stock market held by U.S. publicly-traded companies. The runners-up for the largest global stock market are Japan and the United Kingdom, which represent about 6% each.
900 points: The amount of increase in the Dow Jones Industrial Average during 2008, right before the stock market tanked and the Recession really took hold. Although you might assume that a big increase is a good sign, economists and stock market investors will be quick to explain that any big changes in the U.S. stock market tend to have more negative effects than positive ones.
So now it’s your turn to contribute! If you have any cool statistics or facts about the stock market, feel free to leave them in the comments section below!