Proinnsias Ó Cillín: a brief bio

Disclaimer: I am a relative newcomer to Stocks and Shares. I offer these pages, not as an expert, but as a way of sharing my experience. I believe that I can help other newcomers to understand this world, so often expressed either in impenetrable jargon or in endless verbiage. I can also guide them to sites that I found most useful. If you want investment advice, however, I suggest you approach those who hold themselves out to be experts, e.g., brokers, online or traditional.

Investing in Small Caps

Advantages

Prices can rise dramatically.

Disagdvantages

Prices can fall dramatically.
Since the value of a small cap's shares traded on a given day is measured in thousands rather than millions, your order can easily swamp the market. (Your broker may offer the service of watching the values invested and, if there is a danger of your order swamping the market, releasing it in bits rather than all together).
When the market takes notice of a small cap, the orders to buy may be totally out of proportion to the number of shares available.
When the market loses interest, it may be impossible to sell.
Since the price is set at what a willing purchaser is prepared to give and a willing vendor is prepared to take, the price of a small cap may be totally out of proportion to the share's real value.
An e-mail (or SPAM) campaign can send the price of a small cap into the stratosphere temporarily, from which is soon collapses.

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Killeens Financial

Investing in Small Caps

Advantages

Disagdvantages