Investing in smaller companies
Introduction|
Course|
Q&As |
Recommended reading|
Quiz |
Introduction
Context
The received wisdom is that investing in small companies is more risky than investing in large ones. Recent performance of the indices suggests this may not be the case, but over time, it probably is. Whatever the risks, small caps demand a special kind of treatment, and the purpose of this course is to show what that is.
Prior knowledge required
Small companies are probably not a suitable place for complete beginners to start their investing careers.
Contents
- What is a small cap?
- The arguments in favour of smaller companies
- The arguments against smaller companies
- The aim of investing in smaller companies
- No single method
- Is it a good business?
- Can you buy at a reasonable price?
- Penny shares and other speculative stocks
- A note about tax
- Other tips
- Conclusion