A small cap company is a company whose market capitalization (shares 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).
Overview
A small cap company typically has under $2 billion market cap. Small companies generally are not able to secure the best (prime) borrowing rates and wield reduced power, including a smaller market share. Being small, they are also less financially stable than larger companies, and are more likely to become bankrupt. However, they do generally have more growth potential and over time have greater but more volatile expected returns.
See also Mega-cap, over $200 billion Large-cap, $10 billion to $200 billion Mid-cap, $2 billion to $10 billion Micro-cap, $50 million to $250 million Nano-cap, less than $50 million List of public corporations by market capitalization Market price Authorised capital Treasury stock Market capitalization
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