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microcap

Upper-Intermediate (B2)

IPA: /ˈmaɪ.kroʊ.kæp/

KK: /ˈmaɪkroʊˌkæp/

adjective
Definition

Relating to companies that have a very small market capitalization, typically less than 250 million dollars.


Example

Investing in microcap stocks can be risky but also offers the potential for high returns.


Conversation
Sloth A
Have you heard about the new microcap stocks that are gaining popularity?
Sloth B
Yeah, I've seen some discussions about them online.
Sloth A
I think investing in microcap companies could be a good opportunity.
Sloth B
Definitely! They might have higher risks, but the potential rewards could be huge.

Synonyms & Antonyms
Synonyms
small
minor
petite
Antonyms
large
major
significant
noun
Definition

A company with a very small market capitalization, typically valued at less than $300 million.


Example

Investing in microcap stocks can be risky but may offer high rewards.


Conversation
Sloth A
Have you heard about that new microcap company everyone's talking about?
Sloth B
Yeah, I read something about it; they have a lot of potential.
Sloth A
I think investing in a microcap could be a good idea if they grow.
Sloth B
Root Explanation

Microcap → It is formed from "micro-" (from Greek "mikros", meaning small) and "cap" (from Latin "caput", meaning head or top). The term refers to companies with a small market capitalization, indicating their size in the financial market.

Memory Tip

Think of 'small' ('micro-') companies that are at the 'top' ('cap') of the small market — that's what microcap refers to.

Visually Confused Words
miscrop
Is this page helpful?
Absolutely! Just need to do some research to understand the risks.

Synonyms & Antonyms
Synonyms
penny
smallcap
startup
Antonyms
bluechip
largecap
midcap