A small-cap stock is a stock of a publicly-traded company whose market capitalization ranges from $300 million to approximately $2 billion. Small-cap stocks have a bad reputation as the media usually focuses on their negative side,as they also say small caps lack the quality that investors should demand in a company. Indeed, these are all valid concerns for any company. Small caps also experience higher volatility, and individual small companies are more likely to go bankrupt than large firms.