Due to the nature of Wall Street, many appealing small cap stocks such as The Original Soupman (NASDAQ: SOUP), Quadrant 4 Systems (OTC: QFOR), Mondial Ventures (OTC: MNVN), Premium Exploration (OTC: PMMEF), High Performance Beverages (OTC: TBEV), and Premiere Opportunities (OTC: PPBL), and many others are overlooked by institutional investors.
Crowdfunding could soon change that state of affairs.
Crowdfunding is when many individuals come together, generally over the Internet, to fund a project. That is the opposite of the way Wall Street works. Crowdfunding works with the masses. Investors from Wall Street try to hide what they are doing as they do not want the prices to be driven up by others jumping in on their deal.
In addition, major institutional investors such as pension funds and mutual funds prefer large cap stocks such as Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT). There are more shares on the market, which makes it easier to buy and sell massive quantities of stock. As detailed in previous articles, there is also much to like about Microsoft and Apple. But there is a whole lot to like about The Original Soupman, Mondial Ventures, Premium Exploration, Premiere Opportunities, and Quadrant 4 Systems.
Small cap stocks could soon benefit from crowdfunding. The Securities and Exchange Commission is starting to relax the rules for crowdfunding. There is much about many small caps that should appeal to crowdfunding. As examples, quarterly revenue growth is strong for both The Original Soupman and Quadrant 4 Systems, according to Yahoo! Finance. Mondial Ventures and Premium Exploration have promising holdings in natural resources in North America. In Asia, Premiere Opportunities is tapping into the lucrative fashion market. Soft drink sales are falling, which makes energy drink firms like High Performance Beverages alluring.
Recognizing opportunities like those is what crowdfunding relies on to bring in as much capital as possible for a project.
It would seem that crowdfunding is ideal for small cap stocks. Hopefully, that will happen in the future as all parties would benefit. That should be especially true for those who invest in publicly traded companies like Premium Exploration, Mondial Ventures, The Original Soupman, Premiere Opportunities, and High Performance Beverages.