Buzzword of the Week: Ankle Biter

According to Investopedia, an Ankle Biter is a stock issue with a market capitalization of less than $500 million. These stocks are also known as “small cap” stocks.

These stock issues can appear to be more speculative than stocks with high market capitalization. However, smaller issues often have great growth potential and tend to outperform larger market capitalization stocks. Small cap stocks are often biting at the ankles of the larger cap stocks and will one day – through capitalization growth – move up into the larger market capitalizations, as a child grows into adulthood.

Share This:


Leave a Reply