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Financial encyclopediaReviewed 2026-10-23

Microcap stock

The term “microcap stock” (sometimes referred to as “penny stock”) applies to companies with low or micro market capitalizations .  Companies with a market capitalization of less than $250 or $300 million are often called “microcap stocks” – although many have market capitalizations of far less than those amounts.  The smallest public companies, with market capitalizations of less than $50 million, are sometimes referred to as “nanocap stocks.”

Sources and references ↗
PROFILE / FACT FILE

Concept at a glance

Term
Microcap stock [1]
Subject area
Investor.gov glossary [1]
Jurisdiction / scope
US regulatory and investor-education context [1]
Primary reference
SEC · Investor.gov [1]

Definition and explanation

The term “microcap stock” (sometimes referred to as “penny stock”) applies to companies with low or micro market capitalizations .  Companies with a market capitalization of less than $250 or $300 million are often called “microcap stocks” – although many have market capitalizations of far less than those amounts.  The smallest public companies, with market capitalizations of less than $50 million, are sometimes referred to as “nanocap stocks.” [1]

Source-supported connections

Microcap stock → Mentioned in the official explanation → Market Capitalization [1]
Microcap stock → Mentioned in the official explanation → Stock [1]

Frequently asked questions

What does Microcap stock mean in the cited reference?

The term “microcap stock” (sometimes referred to as “penny stock”) applies to companies with low or micro market capitalizations .  Companies with a market capitalization of less than $250 or $300 million are often called “microcap stocks” – although many have market capitalizations of far less than those amounts.  The smallest public companies, with market capitalizations of less than $50 million, are sometimes referred to as “nanocap stocks.” [1]

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Microcap stock connection map

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Microcap stock

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Links retain their source-specific meaning. Award-time affiliations and links to related reading are not claims about current appointments or economic causation.

Sources and review dates

  1. US SEC · Investor.gov — Microcap stock ↗

Reviewed 23 October 2026. Historical dates and award-time affiliations retain their original context. A review date is not an event date. Background sources are identified separately from official records.

Content preparation: source-based compilation with AI assistance. See methods and attribution. Named sources identify the underlying records; no individual expert review is claimed.