While the market capitalization of a small or micro-cap stock varies depending on who you ask, we believe a small-cap stock is a company with a market cap below C$500 million, while a micro-cap stock is a company with a market capitalization below C$50 million. Given that the average market capitalization of a TSXV-listed company was C$27 million in December 2019, most TSXV and Canadian Securities Exchange issuers likely fall under the micro-cap category.
Small-caps are typically very risky investments and it can be argued that micro-caps are even riskier than small-caps.