Small-capitalization stock

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Small-Capitalization Stock

A stock in a publicly-traded company with low amount of market capitalization. In general, a small-cap company has a market capitalization of less than $1 billion or $2 billion, but there is no specific definition. Some brokerages or exchanges have slightly different definitions of small-cap. Some indexes track small-cap companies, as do some exchange traded funds. See also: High-cap, Mid-cap.

Small-capitalization stock.

Shares of relatively small publicly traded corporations with a total market capitalization of less than $2.3 billion are typically considered small-capitalization, or small-cap, stocks.

That number is not used uniformly, however, and you may find small-cap defined as below $1.5 billion. Market capitalization is calculated by multiplying the market price per share by the number of outstanding shares.

Small-cap stocks, which are tracked by the Russell 2000 Index, tend to be issued by young, potentially fast-growing companies. Over the long term -- though not in every period -- small-cap stocks as a group have produced stronger returns than any other investment category. Mutual funds that invest in this type of stock are known as small-cap funds.

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References in periodicals archive ?

The TSP offers several different investment funds: Government Securities Investment ("G" Fund); Fixed Income Index Investment ("F" Fund); Common Stock Index Investment ("C" Fund); Small Capitalization Stock Index Investment ("S" Fund), and International Stock Index Investment ("I" Fund).

Administrative and civil law note

However, when considered jointly (Model 4), the coefficients for broad-based stock returns (VWR) and bond returns (BR) are still negative, while the coefficient for small capitalization stock returns (SCR) is positive.

Stamp returns and economic factors

Panel A of Table 4, representing large capitalization stocks, shows t-statistics of market capitalization differences (from the beginning to the end of the reference periods) predominately significant in relation to the t-statistics in Panel B representing small capitalization stocks.

An examination of corporate stock buybacks: do they really create value?

DXJS is designed to provide exposure to small capitalization stocks within Japanese equity markets while hedging exposure to the yen.

WisdomTree launches new funds in Japan, UK

* Small capitalization stocks outperform big capitalization stocks;

Testing the Fama French three factor model in the Moroccan stock market

When the investors expect that the economy will expand rapidly, the small capitalization stocks will have, on average, better returns than large capitalization stocks.

Equity risk factors and macroeconomic growth in Greece

The data examined in this study consist of monthly rates of return over the period of January 1969 through December 1995 on two stock indices from the London Stock Exchange: (1) Financial Times Actuaries-All Share Stock Index (FTA), representing large capitalization stocks in the UK, and (2) Smaller Companies Stock Index (UKSM), as an index of small capitalization stocks. From January 1969 through March 1986, monthly returns on the UKSM are represented by rates of return on the Hoare Govett Smaller Company Stock Index compiled by the London School of Business.

Size, time-varying beta, and conditional heteroscedasticity in UK stock returns

Mutual funds holding small capitalization stocks (companies valued between 50 million and $1 billion) peaked in 1983 and then stayed in the doldrums for eight years.

Getting a bang from bonds: savings bonds - from zeros to EES - stand to offer great, safe rewards

Small capitalization stocks, among which are many drug chains, surged during the first half.

Drug chains outperform market during half

In what should be good news for investors in chain drug stocks, which tend to be classified as small growth companies, investment analysts feel that many large institutional investors are beginning to buy small capitalization stocks with superior prospects for the first time in a number of years.