Small cap

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A small cap stock is one that is tied to a company with a somewhat small market capitalization. Often, the gauge of a small cap is if the company has between $250 million and $1 billion in market capitalization. Other categories are over $5 billion in capitalization for a large cap and $1 billion to $5 billion for mid caps. The stock for a company with a capitalization of under $250 million is considered a micro cap stock.

The NASDAQ Capital Market is a market where smaller, less-capitalized companies who do not qualify for the NASDAQ National Market can be traded.