SMALL CAPITAL Meaning and
Definition
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Small capital refers to a category of stock comprising companies with a relatively lower market capitalization. In financial markets, market capitalization refers to the total value of a company's outstanding shares. Small capital stocks generally have a smaller market cap compared to large-cap or mid-cap stocks, which typically indicates that they are smaller in size or have less financial resources.
The market capitalization threshold for small capital stocks may vary depending on the context, but it generally falls within the lower range of market cap classifications. Although there is no universally accepted definition, small-cap stocks often have market capitalizations between $300 million and $2 billion.
Small capital stocks are often found in early-stage or growing companies with significant potential for expansion. They are typically characterized by higher volatility and may offer greater growth opportunities compared to larger, more established companies. Consequently, small-cap stocks can be appealing to investors seeking higher potential returns, albeit with higher associated risks.
Investing in small-capitalization stocks can be beneficial for portfolio diversification, as they tend to have lower correlation with larger stocks. Additionally, they can provide exposure to different sectors or industries that are underrepresented in larger companies, potentially enhancing the overall risk-return profile of the investment portfolio.
However, it is important to note that small-cap stocks may be less liquid, meaning that buying or selling shares may be more challenging due to lower trading volumes. Investors interested in small-cap stocks should carefully analyze the company's financials, growth prospects, and overall market conditions to make informed investment decisions.
Common Misspellings for SMALL CAPITAL
- amall capital
- zmall capital
- xmall capital
- dmall capital
- emall capital
- wmall capital
- snall capital
- skall capital
- sjall capital
- smzll capital
- smsll capital
- smwll capital
- smqll capital
- smakl capital
- smapl capital
- smaol capital
- smalk capital
- smalp capital
- smalo capital
Etymology of SMALL CAPITAL
The term "small capital" is a combination of two words: "small" and "capital".
The word "small" originated from the Old English word "smæl", which meant "not large in size, amount, or degree". It has roots in the Proto-Germanic word "smalaz" and is related to the Old High German word "smal", and the Dutch word "smal".
On the other hand, the word "capital" comes from the Latin word "capitalis", which means "of the head", derived from "caput" meaning "head". In ancient Rome, "capitalis" was used to designate several things, including the top division of a column, money, and punishments worthy of death, which were often carried out by beheading.
Similar spelling words for SMALL CAPITAL
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