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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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.
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By definition, small-cap stocks have a small market capitalization (the number of shares of stock outstanding multiplied by the price per share, relative to other publicly traded companies).
is a leading independent research firm focused exclusively on small-cap stocks.
Small-cap stocks still lagging behind the rest of the market
com with money that might have gone to small-cap stocks in year's past.