Which of the following are typical characteristics of small cap stocks?
I. strong balance sheets
II. market cap less than $2 billion
III. potential for high returns along with high risk
IV. potentially dramatic changes in their earnings
A) III and IV only
B) II and III only
C) I, III and IV only
D) II, III and IV only

Question

Quizplus · Accepted Answer

Small cap stocks typically have a market cap less than $2 billion, potential for high returns along with high risk, and can experience potentially dramatic changes in their earnings. Strong balance sheets are not a characteristic unique to small cap stocks.

Which of the Following Are Typical Characteristics of Small Cap