Small-cap investments focus on companies with small market capitalization. Due to their small size and lack of liquidity small-cap companies are often considered high-risk investments. However, they also offer greater potential for growth compared to large-cap companies. Small-cap investing involves a lot of research to evaluate the financials of the company. When investing in small-cap companies, diversifying your investments is even more important. Instead of investing in an individual company, choose a portfolio of small-cap stocks to diversify your investments.

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