Small cap company

Short description: Shares offered by a relatively small company in terms of value

A small cap company is a company whose market capitalization (shares x value of each share) is considered small. In the United States, this includes market caps from $250 million to $2 billion (as of 2022).[1]

## Overview

A small cap company typically has under $2 billion market cap. Small companies generally are not able to secure the best (prime) borrowing rates and wield reduced power, including a smaller market share. Being small, they are also less financially stable than larger companies, and are more likely to become bankrupt. However, they do generally have more growth potential and over time have greater but more volatile expected returns.[2][3]

## See also

* Mega-cap, over $200 billion
* Large-cap, $10 billion to $200 billion
* Mid-cap, $2 billion to $10 billion
* Micro-cap, $50 million to $250 million
* Nano-cap, less than $50 million
* List of public corporations by market capitalization
* Market price
* Authorised capital
* Treasury stock
* Market capitalization

## References

1. ↑ "Market Cap Explained". 30 September 2022. https://www.finra.org/investors/insights/market-cap.
2. ↑ Bowman, Jeremy. "3 Best Small-Cap Stocks to Buy in 2023". https://www.fool.com/investing/stock-market/types-of-stocks/small-cap-stocks/.
3. ↑ Tucker, Hank (5 July 2023). "The Best And Worst Small Cap Stocks Of First Half 2023". Forbes. https://www.forbes.com/sites/hanktucker/2023/07/01/the-best-and-worst-small-cap-stocks-of-the-first-half-of-2023/.

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Financial markets

Types of markets|

* Primary market
* Secondary market
* Third market
* Fourth market

Types of stocks|

* Common stock
* Golden share
* Preferred stock
* Restricted stock
* Tracking stock

Share capital|

* Authorised capital
* Issued shares
* Shares outstanding
* Treasury stock

Participants|

* Broker-dealer
* Day trader
* Floor broker
* Floor trader
* Investor
* Market maker
* Proprietary trader
* Quantitative analyst
* Financial law
* Regulator
* Stock trader

Exchanges|

* Electronic communication network
* List of stock exchanges
* Trading hours
* Multilateral trading facility
* Over-the-counter

Stock valuation|

* Alpha
* Arbitrage pricing theory
* Beta
* Bid–ask spread
* Book value
* Capital asset pricing model
* Capital market line
* Dividend discount model
* Dividend yield
* Earnings per share
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* Security characteristic line
* Security market line
* T-model

Trading theories
and strategies|

* Algorithmic trading
* Buy and hold
* Contrarian investing
* Day trading
* Dollar cost averaging
* Efficient-market hypothesis
* Fundamental analysis
* Growth stock
* Market timing
* Modern portfolio theory
* Momentum investing
* Mosaic theory
* Pairs trade
* Post-modern portfolio theory
* Random walk hypothesis
* Sector rotation
* Style investing
* Swing trading
* Technical analysis
* Trend following
* Value averaging
* Value investing

Related terms|

* Block trade
* Cross listing
* Dark pool
* Dividend
* Dual-listed company
* DuPont analysis
* Efficient frontier
* Flight-to-quality
* Government bond
* Haircut
* Initial public offering
* Long
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* Market anomaly
* Market capitalization
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* Market manipulation
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* Reverse stock split
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* Stock dilution
* Stock exchange
* Stock market index
* Stock split
* Trade
* Uptick rule
* Volatility
* Voting interest
* Yield

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