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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The market in the New York metro area has being seeing record prices, low cap rates, and even lower interest rates, but it is uncertain how long those trends will continue.
While survey participants rated apartments the second-best investment, high property prices and low cap rates in many locations gave some respondents pause.
Petherbridge, chief financial officer of DDR, commented, "During the third quarter, we continued to upgrade our portfolio by selling lower growth, institutional quality assets into an environment of historically low cap rates for our property type.
Until interest rates rise and development picks up, STNL investment buildings are expected to remain at historic low cap rates.
The property was sold at a low cap rate on market rents after an intense marketing campaign that attracted interest from all over the country.
NATURAL resources minister Alun Davies has said he will consider what help, if any, to give moorland farmers affected by low CAP payments.
Despite a relatively low cap on donations--individuals can currently give no more than $1,200 annually--wealthier Canadians carry disproportionate weight in the total aggregate of donation dollars.
While there was a ban on corporate sponsors and relatively low cap on contributions for the first event 6 Obama reduced the limit to $50,000, down from the $250,000 set by his predecessor George W.
Common Cause, an NGO, and some others, represented by advocate Prashant Bhushan, have argued that the low cap on liability would make nuclear plants more unsafe as operators would prefer to bear the burden of an accident rather than going for safety installations.
A number of recent purchases, including Harry Macklowe's $255 million pending acquisition of 737 Park Avenue, have raised eyebrows for their high prices and low cap rates.
He estimated that more than 70% of ATMs deployed by independent service organizations (organizations not affiliated with a financial institution) would likely be pulled from service if a low cap were put into place.
It works better for refinances than for new acquisitions because of the current, low cap rates.