Listen to a Business English Dialogue About Small capitals
Mary: Hi Natalie, have you ever invested in small capitals?
Natalie: No, I haven’t. What are small capitals?
Mary: Small capitals are stocks of companies with relatively low market capitalization, usually ranging from a few million to a few billion dollars.
Natalie: Oh, I see. Are there any advantages to investing in small capitals?
Mary: Some investors believe that small capitals have greater growth potential compared to larger companies because they have more room to expand and innovate.
Natalie: Are there any risks associated with investing in small capitals?
Mary: Yes, small capitals can be more volatile and less liquid than larger companies, which means their stock prices can fluctuate more and it may be harder to buy or sell shares at favorable prices.
Natalie: How do investors typically evaluate small capitals before investing?
Mary: Investors often look at factors like the company’s financial health, growth prospects, and competitive position to assess the potential risks and rewards of investing in small capitals.
Natalie: Thanks for explaining, Mary. Investing in small capitals sounds like it requires careful consideration.
Mary: You’re welcome, Natalie. Indeed, it’s important to do thorough research and understand the unique characteristics of small capital stocks before making investment decisions.