Small cap company: Difference between revisions
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{{Short description|Shares offered by a relatively small company in terms of value}} |
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{{Unreferenced|date=March 2009}} |
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In the United |
In the United States, a '''small cap company''' is a company whose [[market capitalization]] ([[share (finance)|share]]s x value of each share) is considered small, from $250 million to $2 billion. Market caps terms may be different outside the United States.<ref>{{Cite web|url=https://www.finra.org/investors/insights/market-cap|title=Market Cap Explained | FINRA.org|website=www.finra.org}}</ref> |
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==Overview== |
==Overview== |
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A small cap company typically has under $2 billion market cap and are hence considered small companies. Small companies generally are not able to secure the best ([[prime rate|prime]]) borrowing rates and wield reduced power, including a smaller [[market share]]. Being small, they are also less financially stable than larger companies, and are more likely to become [[bankrupt]]. However, they do generally have more [[growth potential]] and over time have greater but more volatile expected returns. |
A small cap company typically has under $2 billion market cap and are hence considered small companies. Small companies generally are not able to secure the best ([[prime rate|prime]]) borrowing rates and wield reduced power, including a smaller [[market share]]. Being small, they are also less financially stable than larger companies, and are more likely to become [[bankrupt]]. However, they do generally have more [[growth potential]] and over time have greater but more volatile expected returns.<ref>{{Cite web|url=https://www.fool.com/investing/stock-market/types-of-stocks/small-cap-stocks/|title=3 Best Small-Cap Stocks to Buy in 2023|first=Jeremy|last=Bowman|website=The Motley Fool}}</ref><ref>{{Cite web|url=https://www.forbes.com/sites/hanktucker/2023/07/01/the-best-and-worst-small-cap-stocks-of-the-first-half-of-2023/|title=The Best And Worst Small Cap Stocks Of First Half 2023|first=Hank|last=Tucker|website=Forbes}}</ref> |
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== See also == |
== See also == |
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*[[Megacap stock|Mega-cap]] over $200 billion |
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*[[Market capitalization|Large-cap]] $10 billion and $200 billion |
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*[[Mid cap|Mid-cap]] $2 billion and $10 billion |
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*[[Microcap stock|Micro-cap]]: $50 million to $250 million |
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*[[Microcap stock|Nano-cap]] Less than $50 million |
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*[[List of public corporations by market capitalization]] |
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*[[Market price]] |
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*[[Authorised capital]] |
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*[[Treasury stock]] |
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* [[Market capitalization]] |
* [[Market capitalization]] |
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== References == |
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{{Reflist}} |
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{{Stock market}} |
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[[Category:Publicly traded companies]] |
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[[Category:Business terms]] |
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[[Category:Small business]] |
[[Category:Small business]] |
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{{business-stub}} |
{{business-stub}} |
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Latest revision as of 13:06, 30 January 2024
In the United States, a small cap company is a company whose market capitalization (shares x value of each share) is considered small, from $250 million to $2 billion. Market caps terms may be different outside the United States.[1]
Overview
[edit]A small cap company typically has under $2 billion market cap and are hence considered small companies. Small companies generally are not able to secure the best (prime) borrowing rates and wield reduced power, including a smaller market share. Being small, they are also less financially stable than larger companies, and are more likely to become bankrupt. However, they do generally have more growth potential and over time have greater but more volatile expected returns.[2][3]
See also
[edit]- Mega-cap over $200 billion
- Large-cap $10 billion and $200 billion
- Mid-cap $2 billion and $10 billion
- Micro-cap: $50 million to $250 million
- Nano-cap Less than $50 million
- List of public corporations by market capitalization
- Market price
- Authorised capital
- Treasury stock
- Market capitalization
References
[edit]- ^ "Market Cap Explained | FINRA.org". www.finra.org.
- ^ Bowman, Jeremy. "3 Best Small-Cap Stocks to Buy in 2023". The Motley Fool.
- ^ Tucker, Hank. "The Best And Worst Small Cap Stocks Of First Half 2023". Forbes.
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