Glossary BG Image

Small-capitalization (small cap) stocks

Browse Terms By Number or Letter:
Financial Terms By: s
Small-capitalization (small cap) stocks

The stocks of companies whose market value is less than $1 billion. Small-cap companies tend to grow faster than large-cap companies and typically use any profits for expansion rather to pay dividends. They also are more volatile than large-cap companies, and have a higher failure rate.

Copyright © 2018, Campbell R. Harvey. All Worldwide Rights Reserved. Do not reproduce without explicit permission.