Denoting or relating to the stock of a company with a small capitalization.
- Many small-cap stocks suffer from an almost permanent ‘liquidity discount’ because they simply are not on investors' radar screens.
- Or perhaps you're now ready to take on greater risk and your asset allocation requires a small proportion of your assets to be held in riskier small-cap stocks.
- Other firms are mulling ending coverage of whole industries, say telecom, or asset classes, such as small-cap stocks.
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