The financial definition for 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
stocks for expansion rather to pay dividends. They also are more volatile than
large-cap companies, and have a higher failure rate.
Similar Matches
Capitalization method
Capitalization method A method of constructing a replicating portfolio in which the manager purchases a number of the most highly capitalized names in the stock index in proportion to their capitalization.
Capitalization rate
Capitalization rate The rate of interest used to calculate the present value of a number of future payments.
Capitalization ratios
Capitalization ratios Also called financial leverage ratios, these ratios compare debt to total capitalization and thus reflect the extent to which a corporation is trading on its equity. Capitalization ratios can be interpreted only in the context of the stability of industry and company earnings and cash flow.