small-capitalization

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small-capitalization

A financial chart shows several small-capitalization stocks rising in value.

Definition

Adjective: - Relating to companies with a relatively low total market value: The term "small-capitalization" describes stocks or companies whose total market value (calculated as share price multiplied by number of shares) is considered small, typically under a specific threshold like one billion dollars. It categorizes the size of a company in the financial markets.

Usage
  • This adjective is used almost exclusively in financial and investment contexts to classify companies or investment funds based on company size.
  • It typically precedes a noun (e.g., small-capitalization stock, small-capitalization company).
  • The hyphenated form "small-capitalization" is standard, though the abbreviated "small-cap" is very common.
Examples
Advanced Usage
  • "Small-capitalization" vs. "Small-Cap": "Small-cap" is a widely accepted and frequently used abbreviation in finance. The terms are synonymous.
    • The small-cap index outperformed the market this quarter.
  • As part of a spectrum: The term is part of a common size classification: large-capitalization (large-cap), mid-capitalization (mid-cap), and small-capitalization (small-cap). Sometimes "micro-cap" and "nano-cap" describe even smaller companies.
Variants and Related Words
  • Small-cap (adj/n): The abbreviated form of "small-capitalization." Can be used as an adjective () or a noun ().
  • Market Capitalization (n): The total dollar market value of a company's outstanding shares; the calculation that defines a "small-capitalization" company.
  • Small-capitalized (adj): A less common variant with the same meaning.
Synonyms
  • Small-cap: (The direct and most common synonym)
  • Small-sized (in a financial context): (Less precise, but can be used to describe company size generally.)
Antonyms
  • Large-capitalization / Large-cap: Relating to companies with a large market value.
  • Mid-capitalization / Mid-cap: Relating to companies with a medium market value.
  • Blue-chip: Often refers to large, established, and financially sound companies, typically large-caps.
small-capitalization

A financial chart shows several small-capitalization stocks rising in value.

Adjective
  1. of stocks of companies with a market capitalization of less than one billion dollars

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