Ankle Biter


DEFINITION of 'Ankle Biter'

Slang term for a stock with low market capitalization. An ankle biter, generally, is a stock that has a market capitalization of less than $500 million. Such stocks are also referred to as micro-cap or small-cap stocks. Although there is no etched-in-stone definition, typically a stock is considered to be a small-cap if it has a market capitalization of $300 million to $2 billion, while a micro-cap stock is any issue with a market cap of less than $300 million.


The term ankle biter is also used to describe very young children - the idea being that they are so small that they can only reach one's ankles. As an investment, ankle biters - the stocks, not the children - tend to be very volatile and are often thinly traded. On the plus side, ankle biters often have greater growth potential than larger stocks and encompass many emerging technologies.

  1. Micro Cap

    A publicly traded company in the United States that has a market ...
  2. Small Cap

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  3. Large Cap - Big Cap

    A term used by the investment community to refer to companies ...
  4. Nano Cap

    Small public companies with a market capitalization below $5 ...
  5. Market Capitalization

    The total dollar market value of all of a company's outstanding ...
  6. Mega Cap

    The biggest companies in the investment universe, as measured ...
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