Small-capitalization stock

(redirected from Small-Cap Stock)

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.

Mentioned in ?
References in periodicals archive ?
Rowe Price (NASDAQ-GS: TROW) announced that it closed its New Horizons and Small-Cap Stock Funds-along with similar portfolios for institutional clients-to maintain the integrity of the funds' investment strategies and to protect the interests of existing shareholders.
Usually, we have a face-to-face talk with the management and visit the facilities of the company before recommending a penny or small-cap stock," says Gokul Raj P of HBJ Capital Services.
Wyatt also plays an active role in the investment research activities of the company, and as a well-regarded small-cap stock expert, he currently leads his company's premier small-cap stock investing service, SmallCapInvestor.
today announced outstanding first-quarter returns on their top small-cap stock picks of 2000.
Zacks Investment Research has to limit the number of investors who share such fast-moving small-cap stock picks.
His expertise in small-cap stock research should prove invaluable to the Fund," says Robert Levy, Chief Executive Officer and President of Harris Associates L.
Since 1940, the average small-cap stock return of 5.
Robins is a nationally recognized small-cap stock analyst and strategist as well as a regular contributor to Forbes Magazine.
Generally, Shawmut National deems a company with market capitalization below $200 million as a small-cap stock and a company with market capitalization of over $5 billion as a large-cap stock.
However in the pre-final session of the week, the Price Index continued its downward direction, followed by the Weighted and KSX-15 indices, affected by the strong selling pressures on the small-cap stocks and the profit collection operations on the leading stocks that realized gains in the previous session.
Fund managers and analysts warn that small-cap stocks already trade at valuations high above long-term averages, even after significantly lagging large-company shares in 2014.
While individual investor fervor for stock trading has waned, institutional investors are becoming increasingly interested in the legions of undercovered and ignored mid-cap and small-cap stocks in Japan, as the pool of "restructuring," "buyout" and "revitalization" investment funds continues to grow, while the Japanese government continues to lower barriers to more active M & A activity.