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Volume, Volume, Volume
Key considerations for directors:
• The more trading volume a small-cap company’s stock has, the more alternatives the company has.
• Trading volume makes equity financings cheaper and easier.
• Trading volume facilitates institutional ownership and equity research coverage.
• Retail investors—not institutional investors—initially supply trading volume to small-cap stocks.
• Institutional investors are easier to target/identify than retail investors, but math principally determines whether institutional investors can own a given small-cap stock.
Common mistakes to avoid:
• Small-cap directors routinely fail to appreciate the importance of trading volume.
• Many small-cap officers and ...