Small-cap

A small-cap stock is a company with a market capitalization (total value of all its shares) between roughly $300 million and $2 billion. You'll hear investors talk about small-caps when discussing growth opportunities, since these companies are bigger than tiny startups but smaller than household names. They matter because small-caps can grow faster than large companies, but they're also riskier and less liquid—meaning it can be harder to buy or sell shares quickly. For example, a regional grocery chain or a specialized software maker might be small-cap stocks. They're popular with investors hunting for the next big winner, though they require more research and patience than mega-cap stocks.