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Numbered Stones

Why Small and Micro Cap ?

Investing in micro cap companies can offer several potential benefits, but it's important to note that it also comes with higher risks. Here are some reasons why investors might consider investing in micro cap companies.

Potential for High Returns

Micro cap companies are small, often young businesses with significant growth potential. If they succeed and grow rapidly, investors who got in early can potentially see substantial returns on their investment

M&A Targets

Micro cap companies can be attractive acquisition targets for larger companies looking to expand their market presence or acquire new technology or talent. When a micro cap company gets acquired, it can result in a significant premium for shareholders.

Diversification

Including micro cap stocks in a diversified investment portfolio can help spread risk across different asset classes and market segments. Since micro cap stocks don't necessarily move in tandem with larger stocks, they can provide diversification benefits.

Less Institutional Attention

Micro cap stocks are often overlooked by institutional investors due to their small size, which can create opportunities for individual investors to find undervalued or underappreciated gems.

Market Inefficiencies

Due to their small size and lower trading volumes, micro cap stocks can be less efficiently priced compared to larger stocks. This can create opportunities for astute investors to identify mispriced securities and capitalize on pricing inefficiencies.

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"Investment in securities market are subject to market risks. Read all the related documents carefully before investing."Disclaimer: "Registration granted by SEBI, and certification from NISM in no way guarantee performance of the Research Analyst or provide any assurance of returns to investors."

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