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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References in periodicals archive ?

The affirmation of the Europe Small Cap Europe Alpha Equity Fund's 'Excellent' rating reflects the fund's robust long-term performance, supported by a proprietary quantitative model for stock selection, which proves particularly efficient for the large and less efficient European small cap market. Both funds follow an active, systematic investment approach relying on quantitative model inputs.

Fitch Affirms State Street Europe Small Cap at 'Excellent', SSGA EMU at 'Strong'

Pinetree is a diversified investment and merchant banking firm focused on the small cap market, with early stage investments in resource, biotechnology and technology companies.

Pinetree Capital names chief financial officer

Small caps are somewhat more stretched, with the Russell 2000 trading at more than 16x next year's earnings, but few segments of the small cap market appear to be out of bounds.

Are we in a bubble? Where -- and how -- to find value in today's market

Pinetree is a diversified investment and merchant banking firm focused on the small cap market. Pinetree's investments are primarily in the resources sector: Uranium and Coal, Oil & Gas, Precious Metals, Base Metals and Potash, Lithium and Rare Earths.

Pinetree Capital Ltd. Announces Unaudited Financial Results for the Three and Nine Months Ended September 30, 2010

Pinetree Capital Ltd (TSX: PNP), a diversified investment and merchant banking firm focused on the small cap market, has acquired ownership of 5,000,000 common shares and 5,000,000 common share purchase warrants of Slam Exploration Ltd (Slam).

-Pinetree Capital acquires Slam securities

The Nasdaq Capital Market (previously known as the Small Cap Market before it changed its name in September 2005) exists for securities of smaller, less-capitalized companies that do not qualify for inclusion the global Nasdaq.

Changing tables: StockerYale delists itself

Medwave trades on the NASDAQ small cap market under the symbol MDWV.

MEDWAVE SUBMITS PRIMO TO FDA FOR 510(K) REVIEW

The symbol for the company's ordinary shares, which trade on the Nasdaq small cap market, has also been changed to "ASIG," effective Sept.

Stirling Cooke Brown changes name to AlphaStar. (Companies)

But finally in December a slimmed- down public offering did go through--a million shares on the NASDAQ Small Cap market at $6.00, rising to a peak of $14 the first day.

FINANCE: INSIDE A SMALL-CAP IPO

In other cases, a fund manager can start by specializing in the small cap market, only to have the dollar value of the stocks in his or her portfolio reach the mid cap level, converting the fund into a mid cap fund.

Picking the right benchmark

The London Stock Exchange yesterday formally launched Techmark, a small cap market aimed specifically at the high-tech start-up segment.