Small cap trading pertains to small market capitalization stocks, which are generally capped under 2 bn. USD but above 250 million Dollars. Many of them are found on the OTCBB or the Nasdaq exchanges, although they can be discovered some place else. While tiny cap stocks may overlap with penny stocks, many little caps aren't penny stocks and vice versa, so it's important to tell the difference between the 2 types. While penny stocks obviously trade for only one or two cents per share, small cap stocks can trade for more than a greenback per share and have more trading activity or marketing desirability.