Small cap stocks can grow fast and are cheaper than large cap. These lesser known stocks have the potential for huge returns. Then practice what you’ve learned with our free stock market simulation.
Small Cap Stocks List
Here are some smaller stocks that have potential, courtesy of Yahoo!
| Symbol | Company |
|---|---|
| ORGN | Origin Materials Inc. |
| SKIN | The Beauty Health Company |
| TWNK | Hostess Brands Inc. |
| TPB | Turning Point Brands Inc. |
| EGLE | Eagle Bulk Shipping Inc. |
What are Small Cap Stocks?
Small cap stocks are not actually that small. Small cap refers to the market capitalization of a company. While the range can vary depending on who you ask, small cap refers to a company with a market capitalization between $200 million and $2.5 billion. But what does that mean? Market capitalization has two parts, share price and number of outstanding shares. Multiply those two numbers together and you get what is called market cap. Share price is simply the price that a given stock sells for on the marketplace. Outstanding shares on the other hand, refers how many shares the company has issued. Small cap businesses are established, but are dwarfed by tech giants like AAPL, which has market capitalization at over $700 billion.
How to Find Small Cap Stocks to Buy
Small cap stocks are everywhere. These companies aren’t your big fish that everyone has heard of, but can offer great returns in their own right. One of the best attributes of small cap stocks is that they have great growth potential. You hear all the time about people who invested relatively small sums into tech companies like GOOGLE and made ridiculous amounts of money. Invest in the right small cap stock and that could be you.
The reason these smaller stocks are able to grow so fast is that they still have a relatively low market capitalization. Its just not possible for bigger companies to grow as fast because they would eventually become unsustainably large. On other hand, a smaller company can double its market cap many times over as they come into their own. Choosing the right stock is the key to investing in smaller stocks.
Small cap stocks are great because their is less competition from institutional investors. Their funds are so massive that buying a smaller company has little effect on their bottom line. That means a level playing field, and great value with lucrative rewards. Every giant was once a small fry. Who knows what the next Microsoft will be?
Small Cap Mutual Funds
While it is difficult for mutual funds to invest in small cap stocks, there are some who specialize in taking positions in smaller companies. These mutual funds are highly specialized and require tons of man power due to the number of businesses they invest in. Because small cap mutual funds can only invest so much in each company, they end up investing in hundreds of different small companies. This can be a lot to manage considering each business has their own growth and risk.
Fund management can really shine when it comes to picking small cap stocks. That’s because any hidden gem can result in a enormous return as they balloon in size. Imagine buying shares in tech giants like Microsoft, Facebook and Google before they made it big. When a fund manager hits a home run, anyone who invested in that mutual fund stands to make some cash. Look for well managed funds because the return will outweigh the manager’s cut of the profits.
Not all small cap stocks turn into giants, its actually quite rare. That’s why small cap mutual funds diversify into hundreds of different companies. Even if they don’t get lucky, a lot of small cap stocks still have great value.
Get Up to $1,700 in FREE Stock
When you open a Robinhood Brokerage Account
Robinhood was the first brokerage site to NOT charge commissions when they opened in 2013. In June, 2025 they reached 23,000,000 accounts and to celebrate they are offering up to $1,700 in free stock when you open a new account.
Here's the details: You must click on a special promo link to open your new Robinhood account. Then when you fund your account with at least $10, you will receive one stock valued between $5 and $200. Then, you will get a link to share with your friends. Every time one of your friends opens an account, up to 5 a year, you will receive another free stock valued between $5 and $200. See details on this Robinhood free stock offer.
Open your Robinhood account and claim your first free stock NOW
(before it's too late)
We are experienced users of dozens of stock trading platforms. We stay up to date on these platforms' service offerings, subscription fees, trade commissions, and welcome bonuses. The brokerages listed below are for U.S.-based investors, and are ranked in order of overall value received after taking advantage of their sign-up and/or referral offers. ✅ U.S. stocks, ETFs, options, and cryptos $3 monthly sub 10k in assets Growth $3; + $9 Month Bronze $3; Silver $6; Gold $12 a monthThe Best U.S. Brokerages as of June 30, 2025
Ranking of Top U.S. Stock Brokerages Based on Fees, Features, and Sign-Up Bonuses
Rank
Brokerage
Fees
Features
Sign-Up Bonus
Read Our Review
1.
$0
✅ Now 23,000,000 users
✅ Cash management account and credit cardFree stock up to $200 with new account, plus up to $1,500 more in free stock from referrals
Robinhood Review
2.
Moomoo
$0
✅ Free Level 2 Nasdaq quotes for advanced traders
✅ Access to U.S. and Hong Kong markets
✅ Learning tools built in60 free stocks with $5k deposit; or 25 free stocks with $2k deposit
Moomoo Review
3.
Interactive Brokers
$0
✅ Access 150+ global stock exchanges
✅ IBKR Lite & Pro tiers for different experience levels
✅ SmartRouting™ and deep analytics for executionRefer a Friend and Get $200
Interactive Brokers Review
4.
M1 Finance
✅ Automated investing “Pies” with fractional shares
✅ Integrated banking & low-interest borrowing
✅ No trading fees with scheduled trades$75-$500 Tiered Sign-up bonus
M1 Finance Review
5.
Webull
$0
✅ Extended-hours trading premarket and after-hours
✅ Built-in technical charts, screeners, and indicators
✅ Commission-free options trading$10 and a 30-day complimentary subscription to Webull premium;
$200-$30,0000 Tiered Sign up bonusWebull Review
6.
Public
$0
✅ Fractional shares of U.S. stocks and ETFs
✅ No payment for order flow (PFOF) model
✅ “Alpha” tool with earnings calls and sentiment data$100-$10,000 Tiered Cash Account Transfer Bonus
Public Review
7.
Composer
$32 a month
✅ Invest in fully automated stock strategies
✅ Build custom strategies with our no-code builder
✅ IRAs$49 per successful referral with no limit on the number of referrals
Composer Review
8.
Stash
✅ Stock-Back® debit card rewards in fractional shares
✅ Auto-invest and budgeting tools for beginners
✅ Curated theme portfolios for retail investors$5 when you invest $5
Stash Review
9.
Acorns
✅ Automated investing portfolios
✅ ESG curated portfolios
✅ Retirement Accounts
✅ Acorns Early Invest for Kids' AccountsGet a $20 bonus when you start saving & investing
Acorns Review
10.
Etoro
$0
✅ CopyTrading™ feature to follow top traders
✅ Trade U.S. stocks, ETFs, and crypto in one app
✅ Commission-free trades with themed portfolios$10 Crypto Sign-Up Bonus
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11.
Robinhood Gold
$5
✅ 4% APY on cash
✅ 3% IRA match
✅ Level II data; Morningstar
✅ No interest on first $1,000 of margin Save with Annual Fee
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12.
Cash App
$0
✅ U.S. stocks and bitcoin; $1 minimum
✅ Peer-to-peer payments
✅ Beginner-friendly financial ecosystemUp to $200 in free overdraft coverage and earn 4% on cash
Cash App Review
Fees, features, sign-up bonuses, and referral bonuses are accurate as of May 31, 2025. All information listed above is subject to change.