The Risks of Investing in Small-Cap Stocks
Why Small-Caps Are Risky
– Volatile prices and low liquidity.
– Prone to manipulation and rumors.
Business Uncertainty
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Fragile Business Models:
Many are still evolving.
Poor Earnings Visibility:
Lack of consistent profits.
Low Analyst Coverage
– Less data and fewer research reports.
– Hard to validate company claims.
Exit Challenges
– Lower trading volumes.
High impact costs on large orders.
Investment Insights
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Early-stage industry with massive long-term potential.
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Backed by global & Indian government incentives.