Why do some small-cap stock prices rise so fast?
Smaller companies have the potential for a much faster appreciation than bigger, more mature companies. For example, think of how much money General Electric would have to make for its revenues to increase 20%. Then ask yourself the same question about a small-cap company with revenues one-hundredth of General Electric’s. You can see that the enormous upside potential in small-cap companies can send their stocks skyward.
