2 Top Small-Cap Stocks to Buy in July
To make a lot of money in the stock market, it's key to focus on the small-cap section. What do I mean by "small-cap"? Historically, a small-cap stock was any company that had a market cap (share price multiplied by number of shares outstanding) of $2 billion or less. But these definitions were created back when a $100 billion company was considered huge. Now we have Apple and Microsoft valued at over $2 trillion.
So let's not get bogged down in definitions -- "small-cap" is relative. What we need to think about is market opportunity. How big can this small company get? The goal is to buy a $2 billion company, a $4 billion company, or a $6 billion company that has room to grow 10 times in value or more. Impossible? Nay, Fools. Happens all the time. What we need to do is find these small growth stocks, buy them, and hold them for years and years. (That last bit is probably the hardest!)
Image source: Getty Images.
Source Fool.com
