Investors are drawn to small-cap companies due to their inherently risky profiles compared to larger companies. Smaller companies have a greater potential to boom or bust. If an investor chooses wisely and purchases shares in a company that experiences massive growth and share price appreciation over an extended period while it is a small-cap company, it was a great decision. However, if an investor chooses a small-cap company that falters, the losses can be painful. It can be a risky game.But diversificati ...