Small-Cap Stock
InvestingGlossary term
Definition
Stock in a company with market capitalization between $300 million and $2 billion. Generally more volatile than large-cap stocks but with higher growth potential.
Related terms
- Market CapitalizationThe total market value of a company's outstanding shares, calculated by multiplying share price by number of shares. Categories include small-cap, mid-cap, and large-cap.
- Large-Cap StockStock in a company with market capitalization over $10 billion. Generally more stable and less volatile than small-cap stocks. Examples include Apple, Microsoft, and Amazon.
- Growth StockStock in a company expected to grow earnings faster than the market average. Typically reinvests profits rather than paying dividends. Higher potential returns but more volatile.
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