Chapter 7
Small Growth: Sweet Sounding Start-ups
IN THIS CHAPTER
Factoring small company stocks into your investment pie
Tempering your enthusiasm for expansion
Recognizing ETFs that tap into this asset class
Choosing the best options for your portfolio
Knowing how much to allocate
Introducing micro caps
Once upon a time in the kingdom of Redmond, there was a young company called Microsoft. It was a very small company with very big ideas, and it grew and grew and grew. Its founder and its original investors became very, very rich; bought very, very big houses; and lived happily ever after.
Oh, you’ve heard that story? Then you understand the appeal of small growth companies. These are companies that typically have market capitalization (the market value of total outstanding stock) of about $300 million to $2 billion. They frequently boast a hot product or patent, often fall into the ...
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