3.1k views
1 vote
High-tech Industries (HTI) went public 4 years ago by issuing 100 million shares of common stock at $1 per share. HTI's earnings have soared and the stock is now selling for $13 per share. HTI would be considered

1 Answer

6 votes

Answer:

small cap stock

Step-by-step explanation:

A small cap stock is a stock with a small market capitalisation of between $300 million to $2 billion.

Market capitalisation is the market value of a company's outstanding shares.

Market capitalisation of HTI = 100 million x 13 = 1.3 billion

Small cap stocks are highly volatile and highly risky

Advantage of small cap stock : they have a larger potential for growth when compared with large cap stocks

disadvantage of small cap stock :

they are more risky

User TamRock
by
7.8k points