Glossary
/Micro Cap
We are talking about the absolute smallest companies listed on the stock exchange. In India, these are businesses with a total market value of usually below ₹500 crore. Because they are so tiny, even a single big buyer can send the stock price soaring 20% in one day. The upside sounds amazing, but the danger is very real. They are highly illiquid, easy to manipulate, and can crash to zero if the management makes one terrible decision or gets caught in a fraud.