What Is Small-Cap? Meaning & Example
Definition
Small-cap refers to companies with relatively small market capitalizations. They can offer more growth potential but tend to be more volatile.
Related terms
Market capitalization is the total value of a company's shares, found by multiplying the share price by the number of shares outstanding. It is a quick way to gauge company size.
Large-CapLarge-cap refers to companies with very large market capitalizations, typically in the tens of billions of dollars or more. They are often established and relatively stable.
VolatilityVolatility measures how much and how quickly prices move. Higher volatility means bigger swings, which bring both more opportunity and more risk.
What is Small-Cap?
Small-cap refers to companies with relatively small market capitalizations. They can offer more growth potential but tend to be more volatile.
Can you give an example of Small-Cap?
A regional manufacturer worth $1 billion would usually be considered a small-cap company.