small-cap

small-cap definition - business

small-cap

  1. Of or relating to the common stock of a relatively small firm having little equity and few shares of common stock outstanding. Small-cap stocks tend to be subject to large price fluctuations; therefore, the potential for short-term gains and losses is great.
  2. Of or relating to mutual funds that invest in the stock of small-cap companies. See also microcap 2.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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