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A pyogenic granuloma is a common finding in children. It is a small bright red, glistening bump that typically appears on the face, arms or hands. (It looks like a hemangioma, and microscopically it is difficult to tell the two apart.) It typically has a thin, white border where it meets the skin (called a "collarette"). They may ulcerate or become crusty, but most of the ones I have seen were shiny read bead-like bumps, usually with the white collarette visible around the base.
These bumps are thought to arise at sites of skin trauma, but in my experience there usually is no history of any skin injury that the parents can recall.
These things are a "benign nuisance." They are not cancerous in any way, but have a tendency to bleed if the child bumps the lesion. They are usually removed with minor surgery and cautery; it is important for the doctor to destroy all of the lesion, because it might recur if fragments of it are left intact in the skin.