But here’s the thing: some of the most interesting businesses on the Singapore Exchange (SGX: S68) never make it into the headlines. Small-cap stocks – companies with market capitalisation below S$1 billion – are often overlooked, yet they can play a meaningful role in a well-constructed portfolio. Why Small-Cap Stocks Make Investors UncomfortableSmall-cap stocks often trigger a natural “mere exposure effect” – the psychological tendency to prefer the familiar. While household names like DBS (SGX: D05) or Singapore Airlines (SGX: C6L) feel safe, familiarity is not a proxy for security. What Small-Cap Stocks Really Are in SingaporeMarket capitalisation is a useful but blunt tool.