Question

Patrick graduated from college five years ago. he has set up an emergency fund and has been paying off his student loans. in addition, he participates in the retirement plan offered by his employer. he wants to invest $75 per month in very small companies (capitalization between $50 and $300 million or less). he should purchase _______ stocks.

Answer 1

Given that Patrick graduated from college five years ago. He has set up an emergency fund and has been paying off his student loans. In addition, he participates in the retirement plan offered by his employer. He wants to invest $75 per month in very small companies (capitalization between $50 and $300 million or less).

He should purchase micro cap stocks.

Microcap refers to the stock of public companies in the United States which have a market capitalization of roughly $50 million to $300 million.