# Small cap company

> Mediated Wiki article. Canonical URL: https://mediated.wiki/source/Small_cap_company
> Markdown URL: https://mediated.wiki/source/Small_cap_company.md
> Source: https://en.wikipedia.org/wiki/Small_cap_company
> Source revision: 1286997918
> License: Creative Commons Attribution-ShareAlike 4.0 International (https://creativecommons.org/licenses/by-sa/4.0/)

{{Short description|Shares offered by a relatively small company in terms of value}}
A '''small cap company''' is a company whose [market capitalization](/source/market_capitalization) ([share](/source/share_(finance))s 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).<ref name="finra-mktcap">{{Cite web|url=https://www.finra.org/investors/insights/market-cap|title=Market Cap Explained|website=[FINRA](/source/FINRA)|date=30 September 2022 |access-date=2025-02-25 |archive-url=https://web.archive.org/web/20250204011704/https://www.finra.org/investors/insights/market-cap |archive-date=2025-02-04 |url-status=live}}</ref>

==Overview==

A small cap company typically has under $2 billion market cap. Small companies generally are not able to secure the best ([prime](/source/prime_rate)) borrowing rates and wield reduced power, including a smaller [market share](/source/market_share). Being small, they are also less financially stable than larger companies, and are more likely to become [bankrupt](/source/bankrupt). However, they do generally have more [growth potential](/source/growth_potential) and over time have greater but more volatile expected returns.<ref>{{Cite web|url=https://www.fool.com/investing/stock-market/types-of-stocks/small-cap-stocks/|title=3 Best Small-Cap Stocks to Buy in 2023|first=Jeremy|last=Bowman|website=The Motley Fool}}</ref><ref>{{Cite web|url=https://www.forbes.com/sites/hanktucker/2023/07/01/the-best-and-worst-small-cap-stocks-of-the-first-half-of-2023/|title=The Best And Worst Small Cap Stocks Of First Half 2023|first=Hank|last=Tucker|work=[Forbes](/source/Forbes)|date=5 July 2023|access-date=2025-02-25 |url-status=live |archive-url=https://web.archive.org/web/20240721165723/https://www.forbes.com/sites/hanktucker/2023/07/01/the-best-and-worst-small-cap-stocks-of-the-first-half-of-2023/ |archive-date=2024-07-21}}</ref>

== See also ==
*[Mega-cap](/source/Megacap_stock), over $200 billion
*[Large-cap](/source/Market_capitalization), $10 billion to $200 billion
*[Mid-cap](/source/Mid_cap), $2 billion to $10 billion
*[Micro-cap](/source/Microcap_stock), $50 million to $250 million
*[Nano-cap](/source/Microcap_stock), less than $50 million 
*[List of public corporations by market capitalization](/source/List_of_public_corporations_by_market_capitalization)
*[Market price](/source/Market_price)
*[Authorised capital](/source/Authorised_capital)
*[Treasury stock](/source/Treasury_stock)
* [Market capitalization](/source/Market_capitalization)

== References ==
{{Reflist}}

{{Stock market}}

Category:Publicly traded companies
Category:Business terms
Category:Small business

{{business-stub}}

---
Adapted from the Wikipedia article [Small cap company](https://en.wikipedia.org/wiki/Small_cap_company) by Wikipedia contributors ([contributor history](https://en.wikipedia.org/wiki/Small_cap_company?action=history)). Available under [Creative Commons Attribution-ShareAlike 4.0 International](https://creativecommons.org/licenses/by-sa/4.0/). Changes may have been made.