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Small capitalization (small cap) stocks

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.


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