Ankle Biter

In an effort to educate the next generation, we have a Raleigh local Broughton High School student, Aime, here to answer what she thinks of when questioned about the term ankle biter. The first thing Aime thought of was some sort of bug that bites your ankles. 

And while it is used often to refer to young children or small dogs, in the finance world the term ankle biter refers to companies that trade for under $500 million market cap. These companies or stocks are also known as micro-cap or small-cap stocks and can be more generalized as secondary stocks. 

Ankle biters can sometimes have a greater potential for growth rather than larger stocks. However, they can also be quite volatile as an investment.

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