A stock issued by a company that has a capitalization of $300 million or less is called a _______ stock.

Question

Quizplus · Accepted Answer

A micro cap stock is generally defined as a stock issued by a company with a market capitalization of $50 million to $300 million. Therefore, choice C is the correct answer. Choice A (blue chip) typically refers to stocks issued by large, well-established companies with a long history of stable earnings and dividends. Choice B (income) and D (midcap) do not specifically relate to market capitalization, and choice E (penny) typically refers to stocks priced below $1 per share regardless of their market capitalization.

A Stock Issued by a Company That Has a Capitalization