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Small-Capitalization

Definition:

Small-capitalization refers to the categorization of stocks or companies with a relatively low market capitalization. In finance, market capitalization is calculated by multiplying the number of outstanding shares by the current market price of a single share. A small-cap stock or company generally falls within the lower end of the market cap spectrum.

Examples:

• As an investor, it is important to diversify your portfolio by including a mix of large-cap and small-capitalization stocks.
• The small-capitalization sector has shown tremendous growth potential in recent years.
• Small-capitalization companies often have greater growth opportunities but also carry higher risks compared to their larger counterparts.

Synonyms:

Related terms: small-cap, small-cap stocks

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