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Investing Glossary:
Small-capitalization (small cap) stocks
Copyright 2009,
Campbell R. Harvey. All Rights Reserved.
Do not reproduce without explicit permission.
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| Term: |
| Small-capitalization (small cap) stocks
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| Definition: |
| The 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 profits for Expansion rather to pay dividends. They also are more volatile than large-cap companies, and have a higher failure rate.
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