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Don’t Make Me Say I Told You So 93

Most small-caps are listed on NASDAQ, which stands
for National Association of Securities Dealers Automated

Quotations. NASDAQ is a computerized system for trading
in securities. This trading environment is more friendly to

smaller stocks because the New York Stock Exchange provides
much more support for larger companies with more shares

outstanding, and smaller stocks can get lost in that environment.

The best-known benchmark of small-cap stock performance
is the Russell 2000 Index. It is made up of 2,000 stocks with an
average stock market capitalization of around $500 million.

Examples of small-cap stocks:

► Chiasma (Clinical-stage biopharmaceuticals)

► Dyadic International (Biopharmaceuticals)

► Paysign (Prepaid credit and debit cards)

► Flexible Solutions International (Environmental

technology)

► Digital Turbine (Mobile phone app promotion)

Should I Invest in Large-Cap, Mid-Cap, or
Small-Cap Stocks?

There are reasons to invest in each of these asset classes. Here

are some of the characteristics of each:

Chapter 3: You Must Have Growth In Your Portfolio