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To: dbmedia who wrote (327)5/11/2001 7:50:09 PM
From: Ben Wa  Read Replies (1) | Respond to of 526
 
"Because of the low prices of many micro-cap stocks, larger positions can be taken by investors with a
lower amount of risk capital." - My response to your statement follows...
If you own 1,000 shares of a $1 stock and your neighbor has 50 shares of a $20 stock, both of you own $1000 worth of stock and have put $1000 at risk. In addition, the micro-cap stock will likely have a much bigger bid-ask spread, making getting out of the position more expensive. I do not know why you would put such a statement into print.