Small-capitalization stock

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Small-Capitalization Stock

A stock in a publicly-traded company with low amount of market capitalization. In general, a small-cap company has a market capitalization of less than $1 billion or $2 billion, but there is no specific definition. Some brokerages or exchanges have slightly different definitions of small-cap. Some indexes track small-cap companies, as do some exchange traded funds. See also: High-cap, Mid-cap.

Small-capitalization stock.

Shares of relatively small publicly traded corporations with a total market capitalization of less than $2.3 billion are typically considered small-capitalization, or small-cap, stocks.

That number is not used uniformly, however, and you may find small-cap defined as below $1.5 billion. Market capitalization is calculated by multiplying the market price per share by the number of outstanding shares.

Small-cap stocks, which are tracked by the Russell 2000 Index, tend to be issued by young, potentially fast-growing companies. Over the long term -- though not in every period -- small-cap stocks as a group have produced stronger returns than any other investment category. Mutual funds that invest in this type of stock are known as small-cap funds.

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Bolstering our offerings with low-cap equities and an international low-volatility stocks portfolio is a safe option for risk-aware clients and advisors looking to strengthen their portfolios with potential upside.
The stock market rebounded Sunday for several technical reasons including the purchasing activity on the low-cap equities as well as the selective speculations on certain large-cap chips," Financial Analyst Adnan Al-Dulaimi told KUNA.
They consist of the Barclays US Dynamic Balance Index, which appeals to clients responding to low-cap environment by providing uncapped strategy with an annual spread, and the Russell 2000 Index, which calculates performance of small-cap firms to meet requirements of clients seeking to branch out accumulation strategies, offered as a stand-alone option.
share prices were slightly lower Wednesday afternoon pressured by earnings warnings from low-cap technology companies as well as a broker downgrade of the semiconductor sector, Market News International reported.
A transition will take place from low-quality, low-cap and high-beta stocks to higher-quality, higher-cap and lower-beta stocks.
The newly created Barclays US Dynamic Balance Index appeals to customers responding to the low-cap environment by offering an uncapped strategy with an annual spread.