The definition of small cap can vary among brokerages, but generally, it is a company with a market capitalization of between $300 million and $2 billion.
 | | Term of the Day | Words to Know | | |  | | Small Cap | | Small cap is a term used to classify companies with relatively small market capitalization. A company's market capitalization is the market value of its outstanding shares. The definition of small cap can vary among brokerages, but it is generally a company with a market capitalization of between US$300 million and $2 billion. | | Read More » | | Capitalization | | Capitalization is an accounting method in which a cost is included in the value of an asset and expensed over the useful life of that asset. | | Read More » | | | Tipping | | Tipping is the act of providing material non-public information about a publicly-traded company to a person who is not authorized to have the information. | | Read More » | | | Mid-Cap | | Mid-cap is the term given to companies with a market capitalization (value) between $2 and $10 billion. | | Read More » | | | Russell 2000 Index | | The Russell 2000 index measures the performance of approximately 2,000 small caps in the Russell 3000 Index, which comprises the 3,000 largest U.S. stocks. | | Read More » | | | | | | CONNECT WITH INVESTOPEDIA | | | | | | | |
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