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Small capitalization (small cap) stocks |
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Small capitalization (small cap) stocksThe stocks of companies whose market value is less than $1 billion. Small-cap companies tend to grow faster than large-cap companies and typically use any stocks for expansion rather to pay dividends. They also are more volatile than large-cap companies, and have a higher failure rate.Small capitalization (small cap) stocks Similar MatchesCapitalization methodCapitalization methodA method of constructing a replicating portfolio in which the manager purchases a number of the most highly capitalized names in the stock index in proportion to their capitalization. OvercapitalizationOvercapitalizationSaid to occur when a firm cannot service its debt even though its deb../../finance-glossary/equity ratio is not excessive. Nasdaq small capitalization companiesNasdaq small capitalization companiesA group of 2000 companies with relatively small capitalization, which are listed separately and have at least two market makers. Capitalization ratiosCapitalization ratiosAlso called financial leverage ratios, these ratios compare debt to total capitalization and thus reflect the extent to which a corporation is trading on its equity. Capitalization ratios can be interpreted only in the context of the stability of industry and company earnings and cash flow. Recapitalization proposalRecapitalization proposalOften used in risk arbitrage. Plan by a target company to restructure its capitalization (debt and equity) in a way to ward off a hostile or potential suitor. Further SuggestionsCapitalization Weighted IndexCapitalization table Capitalization rate Small capitalization (small cap) fund Total capitalization Leveraged recapitalization |
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