Microcap stocks are shares of small companies with a market capitalization typically under $300 million. These companies are often in the early stages of growth and may not be well-known to investors. Because of their size, microcap stocks can be more volatile and carry higher risks compared to larger companies. Investing in microcap stocks can offer opportunities for significant returns, but it also requires careful research. Many of these companies may have limited financial resources and less liquidity, making it harder to buy or sell shares. Investors should be aware of the potential for both high rewards and substantial losses when considering microcap stocks.