Glossary of Investment Terms
This glossary provides definitions for key terms relevant to stock market investing, with a particular focus on concepts crucial for understanding the micro-cap space in North America. For more in-depth explanations and context, explore the resources on Microcap.com, including our Education Blog, Deep Dive Protocol, and Videos / Website Links. (Alphabetical Order) AIF (Annual Information […]
Frequently Asked MicroCap Questions (FAQ) – North American Focus
This section addresses common questions about investing in micro-cap stocks within the North American market (United States and Canada). My aim is to provide clear, educational information to help you understand the unique opportunities and significant risks associated with this specific investment niche. For deeper dives into specific topics, be sure to explore our entire […]
How to Navigate Regulatory Filings
If the public company website is the “marketing brochure,” then SEDAR+ (the System for Electronic Document Analysis and Retrieval) is the “source of truth.” For penny stock investors in Canada, mastering this platform is the difference between being a spectator and being a participant. In an environment where transparency can be thin, SEDAR+ is where […]
The Art of the Exit: Knowing When to Take Profits in a Microcap Runner
In penny stock investing, finding a “ten-bagger” is only half the battle. The true test of an investor is the ability to exit that position with capital intact. Most retail investors suffer from “round-tripping”—the painful experience of watching a stock soar, only to hold it through the inevitable collapse. Learning the art of the exit […]
The Sunk Cost Fallacy: Why Microcap Investors Cling to Failing Stories
In microcap investing, the hardest decision isn’t when to buy—it’s when to admit you were wrong and sell. While institutional investors are trained to treat every dollar as if it were newly invested, retail microcap investors often fall prey to the Sunk Cost Fallacy: the tendency to stick with a losing position simply because of […]
The Red Flag Checklist: 10 Instant Warning Signs to Walk Away from a Trade
In the microcap market, “winning” is often simply a matter of avoiding the “losers.” While no single red flag guarantees failure, a combination of these indicators suggests that the risk-to-reward ratio has shifted heavily against the retail investor. Before you commit fresh capital, run your prospective trade through this ten-point institutional-grade checklist. 1. The “Paid […]
The Shell Game: Understanding RTOs and the Risks of Dormant Listings
I assume this is applicable to several countries and stock exchanges, but my particular experience is with penny stocks in Canada so my examples make reference specifically to Canada. For microcap stocks, this typically applies to the TSXV or CSE. Here, not every company goes public through a traditional Initial Public Offering (IPO). In fact, […]
The Mechanics of Penny Stock Manipulation
In this article I will examine the mechanisms of pump-and-dump schemes within the world of micro-cap / penny stocks. While these markets provide liquidity for legitimate emerging ventures, they are frequently exploited by coordinated groups (insiders, large investors, stock brokers, and promoters) that use misleading information and hidden share control to artificially inflate prices before […]
Initials Behind a Name Do Not Guarantee Trust or Credibility
In the microcap and small-cap sectors, investors often rely on the presence of “gatekeepers”—lawyers, accountants, and former high-ranking executives—as a proxy for a company’s legitimacy. This is known as the “halo effect,” where the professional credentials or past pedigree of a board member are assumed to guarantee ethical conduct and business success. However, an institutional-grade […]
Mechanisms of Brokerage and Compliance Failure
Regulatory actions against employees at major Canadian institutions—including National Bank, TD, BMO, and Scotia—reveal how internal safeguards are often bypassed through technical and interpersonal deception. 1. The Creation of “Paper Realities” (Falsified Reporting) One of the most dangerous forms of misconduct involves the manufacture of false documents to hide losses or misappropriation. 2. Unauthorized Profile […]