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Are Nanocap Stocks a Beneficial Addition to Your Portfolio?
Market capitalization refers to the total dollar market value of a publicly traded company. It is one of the best measures of a company’s size and is calculated by multiplying the number of shares outstanding by the current stock price per share. Market caps can change day to day when stock prices fluctuate, but they are typically classified as nano, micro, small, mid, large or megacap categories. For an entity to be placed in the nanocap segment, it must have a market cap of less than $50 million.
