Ankle biter is a slang term for a stock with low market capitalization.Ankle biter is also used to describe very young children or possibly a small, aggressive dog. The idea is that both small children and dogs are so small that they can only reach one's ankles. This slang term emerged around the 1950s.As an investment, ankle-biters tend to be quite 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.Generally, an ankle biter 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. They are also sometimes described more generally as secondary 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 an issue with a market cap of less than $300 million.

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