Investing in small-cap stocks - shares of companies with relatively modest market capitalizations, typically between $300 million and $2 billion - can be highly rewarding, as they generally have greater growth potential than larger, well-established businesses.
However, as risk and reward often go hand-in-hand, small-cap stocks do tend to carry higher risk, and are often more volatile. That's why investors need to be cautious and conduct thorough research before making investments into small-cap stocks.
