Russell 2000 (RUT) Stocks Are More Leveraged Than S&P500 (INX), Bank Of America Reported

Stocks of small-cap companies that make up the Russell 2000 are currently trading with large leverage, far exceeding the leverage that S&P500 has.

Currently, small-business stocks that make up the Russell 2000 trades with large leverage that significantly exceeds the S&P 500's leverage, according to the Bank of America.

The reasoning behind this anomaly is pretty straightforward: lower caps are more likely to issue equities and more likely to go bankrupt in a worst-case scenario to transfer profits to shareholders or to invest in growth.

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Usman has been in the blockchain space for 9 years and written dozens of articles about crypto in his career. He wants to put crypto on the global map.