How Do You Spell SMALL CAP?

Pronunciation: [smˈɔːl kˈap] (IPA)

The term "small cap," used to describe companies with a market capitalization between $300 million and $2 billion, is spelled with two words. Each word has its own individual pronunciation in IPA phonetic transcription. "Small" is pronounced /smɔl/ with the "s" sound at the beginning, followed by a short "o" sound and ending with an "l." "Cap" is pronounced /kæp/ with a short "a" sound and the "p" sound at the end. Together, they form the term "small cap" pronounced as /smɔl kæp/.

SMALL CAP Meaning and Definition

1. Small cap refers to a category of companies with relatively small market capitalization, which is calculated by multiplying the current share price of a company by the total number of outstanding shares. The specific threshold at which a company is considered a small cap can vary, but it typically ranges from a few hundred million dollars to a few billion dollars.

   Small cap companies are generally perceived as having a relatively lower profile and revenue compared to their larger counterparts, such as mid-cap or large-cap companies. They often exhibit a higher growth potential but also come with greater risk, as they are more susceptible to market fluctuations and economic downturns. Due to their size, small cap companies may have limited resources and face greater challenges in accessing capital markets for funding expansion or other purposes.

   Investors often view small cap stocks as an opportunity for substantial returns, as these companies have the potential for rapid growth and may be undervalued by the market. However, small caps can also experience greater price volatility and have lower liquidity compared to larger companies. The small cap sector is known for its entrepreneurial spirit and innovation, with many emerging industries being represented within its ranks.

   To summarize, small cap refers to companies with relatively small market capitalization, characterized by lower profile, higher growth potential, increased risk, limited resources, and potential for substantial returns.

Common Misspellings for SMALL CAP

• smallcap

Etymology of SMALL CAP

The term "small cap" is derived from two different words: "small" and "capitalization".

The word "small" originates from the Old English word "smæl", which means "not large in size or amount". It has Germanic roots and is related to the Middle Dutch word "smal" and the Old High German word "smal".

The term "capitalization" refers to the total value of a company's outstanding shares of stock. It is derived from the Latin word "capitalis", which means "of the head", and is related to the Latin word "caput", meaning "head". In finance, the word "capital" refers to financial resources and assets used in the production of goods and services.

When these two words are combined, "small cap" refers to a company with a relatively small market capitalization.

Similar spelling words for SMALL CAP

• small civet,
• small slam,
• smilacaceae,
• small cane,
• small-cap,
• small-scale,
• small change,
• Smalls,
• smolka,
• small stuff,
• small ship.