Skip to main content
small cap

small cap

1 6.3
A company on the stock market with a small market value
  • noun
  • /smɔl kæp/
  • Specialized
translation icon : empresa de pequeña capitalización
  • That is because small caps in the health care space often do not suffer from the same patent cliff issues that their large-cap counterparts are facing.
  • small cap stocks
  • small cap companies

Examples

  • Investors often seek opportunities in small cap companies that have the potential for significant growth.

  • And they just go down the list, all kinds of stock market funds, small cap index fund.

  • I agree that small caps could enter the financial services industry, but I am not sure if they would be an attractive investment.

    Blog text (6)
  • See our technical analysis trading tips, updates, and charting news for the NASDAQ and small cap stocks.

    Blog text (6)
  • While investors can obviously play this trend from a single stock approach, a broader ETF approach could be the way to go in order to spread risk around in case any one firm runs into some trouble (read Could the Small Cap Healthcare ETF Be a Great Pick?).

    Blog text (31)
  • Today, we will be looking at Boyd Gaming (NYSE: BYD) to determine if this small cap is worth a potential investment or not.

    Blog text (6)
  • The product is well split between micro caps and small caps, while it also offers a nice breakdown among the various subsectors of the health care market, ensuring that no one segment drives the risk/return of the fund.

    Blog text (31)
  • During the market rally, many small cap stocks outperformed their larger counterparts.

  • Analysts are optimistic about the future of small cap firms as they bounce back from economic downturns.

Antonyms

large cap
  • Jargon
1 4.4

A company worth more than about ten billion dollars

How Big

large cap
  • Jargon
1 4.4
midcap
  • Jargon
6.3
small cap
  • Specialized
1 6.3

Surface Forms

small cap singular
small caps plural

Morphology

small + cap

The meaning is compositionally built—'small' modifies 'cap' (short for 'capital' as in capital letter) to indicate a reduced-size capital letter—so if a learner knows 'cap' in the typographic sense the meaning is derivable. However, 'cap' = 'capital letter' is a specialized/less frequent sense and the term is jargon in typography, so the sense is not fully predictable for an average B1 learner.

Etymology

Small cap comes from financial talk where cap is short for 'capitalization', the total value of a company. Imagine companies wearing hats: a small cap is a small hat, so it means a publicly traded company with a smaller market value.