Small cap stocks

Choosing small cap stocks is based on finding companies with the potential to become dominant corporations (blue chips) in the future. For example, Bombardier was once an SMB that manufactured and sold snowmobiles. In less than 20 years, Bombardier has become a company known worldwide in the areas of transportation and aeronautics. However, the low demand for small cap stocks make them more volatile, i.e. riskier, when compared to, for example, growth stocks.