Finance Glossary
Small Cap
What does Small Cap mean?
Small Caps (Small capitalizations) are shares of companies with a low market capitalization.
The upper limit of the market capitalization of a "small cap" (around 4 billion euros) varies from one management company to another.
Their small size results in low liquidity and a relative scarcity of financial studies dedicated to them. The risks they represent are often higher than those of large-cap stocks, which are more liquid and better followed by financial analysts. Their performance, over the long term, has proven to be superior to that of large-cap stocks.