Small-capitalization


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Related to Small-capitalization: Mid cap

Small-capitalization (small-cap) fund

A mutual fund that invests primarily in stocks of companies whose market value is less than $1 billion. Small-cap stocks historically have been more volatile than large-cap stocks, and often perform differently from the overall market.

Small-capitalization (small cap) stocks

The stocks of companies whose market value is less than $1 billion. Small-cap companies tend to grow faster than large-cap companies and typically use any profits for expansion rather to pay dividends. They also are more volatile than large-cap companies, and have a higher failure rate.
References in periodicals archive ?
The Russell 2000 index of small-capitalization stocks rose 14.57 points, or 2.24%, to 665.22.
They report that small-capitalization firms realize higher average returns than large firms, and high book-to-market (BE/ME) value stocks earn significantly higher average returns than low BE/ME growth stocks.
These authors find that the conditional (GARCH) volatility of small-stock weekly returns is affected by past shocks to the returns of large firms - a phenomenon they refer to as "risk spillover." Citing theoretical evidence (Ross, 1989) that directly relates the variance of price changes to the rate of information flow in financial markets, they interpret their results as evidence that "aggregate information first affects large firms and is then impounded with a lag in the prices of small-capitalization companies" (p.
Going the mutual fund route is advantageous, especially if you plan to invest in riskier shares such as small-capitalization stocks, foreign issues and real estate investment trusts (REITs), says Percy Bolton, head of Percy E.
The index provides direct exposure to small-capitalization companies that are primarily involved in the cultivation, production and/or distribution of marijuana.
I'm watching whether trading value will rise from 1.5 trillion yen toward 2 trillion yen from now,'' Yoshii said, as individual investors have appeared willing to buy mid- to small-capitalization shares.
Each year for nearly the last nine, small-capitalization market gurus have been predicting that finally large-cap growth stocks will lose steam and small-cap stocks will become the new market leaders.
Solomon, a vocal advocate in support of small company capital formation, is co-chair of the Equity Capital Formation (ECF) Task Force, a group comprised of individuals from across the country's startup and small-capitalization company ecosystems.
He runs the $223 million small-capitalization value fund Ariel Fund (Nasdaq: ARGFX) at a time when the market has showered its affections on fast-growing large-cap growth stocks over the past eight years.
The fund seeks to capture compound earnings growth over time, and will generally focus its investments in small-capitalization and mid-capitalization companies.
With the stock markets for start-up companies showing no signs of stopping to fall, some nervous investors moved to unwind their holdings, mainly small-capitalization issues, on the TSE's main section, Kuramochi said.
As the stock market continues its meteoric rise, small-capitalization stocks have been like bell-bottom jeans and the pet rock: out of style.