Companies with a relatively small market capitalization (or between $300 million and $2 billion market caps). Small cap companies may be appealing to investors looking to beat institutional investors to new or emerging companies. Though small cap stocks have historically outperformed large cap stocks, they are also more volatile due to their “small” market share. Therefore, they are considered riskier investments.
Small Cap
Market Terms
We don't know everything about the markets. We're just devoted to learning. Taken from those smarter than ourselves, here's how we define Small Cap.