Nano of course means very small…tiny…or even minute.
When dealing with stock market valuation, and
classification of companies, this is referred to as
market capitalization, or market value of the
company, based on the price the stock is selling for
in the open market. This can be figured by
multiplying the number of outstanding shares of
stock the company is authorized, by the share price
of the stock on that given day.
Typically, larger
companies, known as Large Cap, are valued over 5
billion dollars, and trade on the biggest stock
exchange there is in the US, The New York Stock
Exchange. These are represented by such companies as
Microsoft, and General Electric. Smaller companies,
known as Small Cap companies, are valued at less the
250 million. Most of those trade on the exchange
known as the NASDAQ. The NASDAQ Stock Market is
comprised of two separate markets: (1) the NASDAQ
National Market that trades the largest and most
active securities, and (2) The NASDAQ Small Cap
Market that lists a smaller number of emerging
growth companies. The NASDAQ Stock Market
electronically lists quotes for over-the-counter
securities. Even smaller issued stock can also be
traded over the counter. . In the U.S.,
over-the-counter trading in stocks is carried out on
the OTC Bulletin Board (OTCBB). The OTCBB is a
regulated quotation service that displays real-time
quotes, last-sale prices, and volume information for
various types of equity securities. The OTCBB was
founded in 1990 and currently provides access to
more than 3300 securities with over 230 market
makers. It is not regulated as a stock exchange.
Nano cap size
companies, generally less than 50 million in market
cap, will typically trade on the NASDAQ, or the OTC.
These are the smallest companies among the
exchanges. Many of these will possibly not make it
in the long run, but some, if not many, will, and an
investor can possibly reap the largest rewards with
these small companies. These companies can grow
thousands of times over, where as a larger company
has already reached most of its rapid growth. Thus,
we have the real attraction of scanning for Nano-Cap
Gems…an unbelievable upside!. |