Re: 2 small-caps I like
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I am new to investing, but have the same problem as a lot of other 2+2ers (I have money laying around not doing anything).
small-caps are mutual funds, correct? Where can you invest in these things online? I am sure there are a lot of places, but which is the best?
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Small-caps are not mutual funds. The term "small-caps" is a quick way of referring to small capitalization stocks, i.e., stock whose capitalization is less than 1 billion dollars where capitalization is defined as the total shares outstanding * the price per share. Smaller companies usually have stock categorized as a small cap. Naturally, small companies tend to have a higher risk of bankruptcy and are more speculative than larger stocks, but they also have the potential 10x in value.
A mutual fund is just a professional managed investment vehicle. You send the mutual fund company your money and they do all of the stock picking and investing for you, for a small fee of course. There are mutual funds that specialize in small-caps, mutual funds that specialize in mid-caps, and mutual funds that specialize in every possible sector you could imagine.
Most people recommend Scottrade for a discount broker, although they are all pretty similar for the most part. I personally use Scottrade and have been very pleased with them thus far.
Anyway, that answers your immediate questions. You should probably pick up a few intro books and familiarize yourself more with various investment strategies. Welcome to the investment forum. :P
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