Micro-Cap Glossary

A financing method allowing a company to sell new shares gradually into the open market at prevailing prices.

The difference between the highest price a buyer will pay and the lowest price a seller will accept for a stock.

The net asset value of a company, calculated as total assets minus total liabilities.

The rate at which a company spends its cash reserves, typically measured monthly or quarterly.

The amount of time a company can continue operating before it exhausts its cash reserves at its current burn rate.

A scheduled or anticipated event, such as clinical trial data or an FDA decision, expected to significantly move a stock's price.

The staged process (Phase I, II, III) of testing a drug's safety and efficacy in humans before FDA approval.

A form of debt that can be converted into equity, typically at a discount to a future financing round or market price.

A reduction in existing shareholders' ownership percentage caused by the issuance of new shares.

A U.S. micro-cap index maintained by S&P Dow Jones that screens for liquidity, financial strength, and fundamental quality. Unlike the Russell Microcap Index, it is designed to exclude the weakest micro-cap companies — shells, zombies, and low-liquidity names. Considered a quality-filtered alternative to Russell.

A restriction placed by the Depository Trust Company limiting electronic clearing of a stock's shares, often signaling regulatory concern.

A measure of company value that adds debt and subtracts cash from market capitalization.

An FDA designation that expedites the review of drugs treating serious conditions with unmet medical need.

A detailed technical and economic analysis assessing whether a mining project is viable to develop.

The number of shares actually available for public trading, excluding restricted and closely-held shares.

The SEC-mandated annual report detailing a public company's financial performance and business operations.

An SEC filing disclosing changes in ownership by company insiders such as officers, directors, and major shareholders.

An SEC filing used to announce major corporate events such as acquisitions, executive changes, or bankruptcy.

Not a pure micro-cap index. Includes large caps, mid caps, small caps, and micro caps, making it one of the broadest investable equity universes in existence. Used by investors who want total market coverage with micro-caps included rather than as a dedicated micro-cap tool.

An auditor's warning that substantial doubt exists about a company's ability to continue operating for the next twelve months.

A real-time data feed showing the order book depth of bids and asks from multiple market makers.

The total value of a company's outstanding shares, calculated as share price multiplied by shares outstanding.

A broker-dealer that quotes both buy and sell prices for a security to provide liquidity.

A publicly traded company with a market capitalization typically between $50 million and $500 million. While no universally accepted threshold exists, this range reflects how professional micro-cap investors actually search today — prioritizing underfollowed, underowned, early-growth businesses over a strict cap ceiling.

One of the broadest global micro-cap benchmarks available. Includes the United States, Europe, Japan, Canada, Australia, and emerging markets. Captures the full investable micro-cap universe across both developed and emerging markets.

A U.S. micro-cap index maintained by MSCI, used primarily by pension funds, institutional investors, and international asset managers. Covers the U.S. micro-cap segment using MSCI's global methodology, making it useful for investors who already use MSCI across other asset classes.

A global micro-cap index covering developed markets only. Used by institutional investors for international micro-cap exposure without emerging market risk. The cleanest way to track micro-caps across the developed world.

A Canadian securities standard requiring mining companies to disclose technical and scientific information based on qualified person review.

FDA status granted to treatments for rare diseases, providing incentives like tax credits and market exclusivity.

A decentralized network of broker-dealers trading securities not listed on a national exchange, organized into OTCQX, OTCQB, and Pink tiers.

A legacy quotation system for OTC equity securities, largely phased out in favor of OTC Markets Group tiers.

The target date by which the FDA is required to complete review of a new drug application.

The lowest tier of OTC Markets trading, for companies with minimal reporting requirements and often higher risk.

Private Investment in Public Equity — a financing method where investors purchase shares directly from a public company, typically at a discount.

Mineral reserves estimated with a high degree of confidence based on geological and engineering data, used to assess a mine's economic viability.

A public stock sale made directly to select investors without a general marketed public offering.

An SEC exemption allowing smaller companies to raise up to $75 million from the public with lighter disclosure requirements than a full IPO.

A process where a private company becomes public by merging into an existing public shell company, bypassing a traditional IPO.

A corporate action that reduces the number of outstanding shares while proportionally increasing the share price, often used to meet exchange listing requirements.

The most widely followed micro-cap benchmark in the world, maintained by FTSE Russell. Includes approximately 1,200–1,400 of the smallest companies in the Russell universe. Tracked by the iShares Micro-Cap ETF (IWC). Considered the gold standard U.S. micro-cap index used by most institutional investors.

Canada's de facto micro-cap benchmark. Contains junior mining, biotech, technology, energy, and early-stage companies listed on the TSX Venture Exchange. Most constituents qualify as micro-caps. One of the most volatile equity indexes in the world, reflecting the high-risk nature of early-stage Canadian companies.

A sale of additional shares by a company or existing shareholders after its initial public offering.

An SEC filing (Form S-3) that lets a company raise capital in stages over time without filing a new registration each time.

A publicly registered company with little or no active business operations, often used as a vehicle for reverse mergers.

The total number of shares sold short but not yet covered, often expressed as a percentage of float.

The creation of a new independent public company by separating part of a parent company's business.

A public bid to purchase shares directly from shareholders, typically at a premium to market price.

Convertible debt or preferred stock with a floating conversion price that can lead to severe share dilution as the stock falls.

The process of a company moving its stock from the OTC markets to a major exchange like Nasdaq or NYSE American.

A security giving the holder the right to buy stock at a set price before expiration, often attached to financings as a sweetener.