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Small-Cap

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Definition of 'Small-Cap'

Small-Cap stocks or indexes refer to companies (or indexes based on those companies) whose Market Capitalization is small relative to the rest of the market.

Small-Cap stocks typically make up the least of the general market by value but usually are greater in number. In other words, a relatively large number of small companies together have a lower value than the rest of the market.

See Also: Large-Cap

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