Small-cap stocks, which fell sharply in 2022 amid the Fed’s aggressive rate hikes, have seen renewed interest from investors over the last month - and in fact, small-cap stocks have outperformed their large-cap counterparts over this time frame.
Typically, small-cap companies have a market cap between $250 million - $2 billion, and many investors consider them to be the “next” Apple (AAPL) or Amazon (AMZN). Small-cap companies, by design, tend to be a lot more volatile and riskier as compared to large caps, and are also prone to frauds as well as “pump and dump” price action, given their low floats.
