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]
See also
- Mega-cap, over $200 billion
- Large-cap, $10 billion to $200 billion
- Mid-cap, $2 billion to $10 billion
- Micro-cap, $50 million to $250 million
- Nano-cap, less than $50 million
- List of public corporations by market capitalization
- Market price
- Authorised capital
- Treasury stock
- Market capitalization
References
- Market Cap Explained FINRA, 30 September 2022, retrieved 2025-02-25^
- Jeremy Bowman. 3 Best Small-Cap Stocks to Buy in 2023 The Motley Fool^
- Hank Tucker. The Best And Worst Small Cap Stocks Of First Half 2023