advantage of being small cap for explosive growth potential
In general, large-cap companies are less likely to experience huge gains in value, while small-cap stocks have better chances of explosive growth.
If a company has attained large-cap status, that typically indicates that the business is relatively mature and established. There’s less room for it to grow compared with a small-cap business, which may still have the potential to expand to new regions or add to its product line, giving it the opportunity to significantly increase in size and revenue.
The difference between large-cap and small-cap company stocks is one of size. Large-cap stocks are issued by larger, more established businesses; small-caps represent ownership in smaller businesses that are still in a growth and expansion phase.
Investors can choose which to add to their portfolio based on their investing goals. Generally, large caps tend to offer stability and potential dividend payments, while small-caps can provide higher risk and rewards. You can also build a portfolio that mixes these two types of shares to get exposure to both segments of the market.