Top Qs
Timeline
Chat
Perspective

Small cap company

Shares offered by a relatively small company in terms of value From Wikipedia, the free encyclopedia

Remove ads

A small cap company is a company whose market capitalization (shares x value of each share) is considered small. In the United States, this includes market caps from $250 million to $2 billion (as of 2022).[1]

Overview

A small cap company typically has under $2 billion market cap. 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]

Remove ads

See also

References

Loading related searches...

Wikiwand - on

Seamless Wikipedia browsing. On steroids.

Remove ads