IPA: /ˈmaɪ.kroʊ.kæp/
KK: /ˈmaɪkroʊˌkæp/
Relating to companies that have a very small market capitalization, typically less than 250 million dollars.
Investing in microcap stocks can be risky but also offers the potential for high returns.
A company with a very small market capitalization, typically valued at less than $300 million.
Investing in microcap stocks can be risky but may offer high rewards.
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.
Think of 'small' ('micro-') companies that are at the 'top' ('cap') of the small market — that's what microcap refers to.