Glossary · from the DESK dictionary
Small Cap
A company with a relatively small market capitalization, in the US commonly defined as roughly $300 million to $2 billion.
In plain words
Small caps often offer higher growth potential than established large caps, but typically come with greater price volatility, lower liquidity, and less analyst coverage.
What it means for traders
A fundamental market-cap category in portfolio construction and fund categorization.
Common pitfalls
Lower liquidity can make entering and exiting positions harder and amplify price swings.
Related terms
Large Cap · Russell 2000
From the DESK dictionary. For information only, not investment advice.
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DESK is a research tool and not investment advice. Page generated: 2026-10-12.