Meaning & use
microcap
Last updated
Meanings
nouncountablebusinessfinance
A company with a very small market value, typically under $300 million, or its stock.
Grammar: Countable noun; use 'a microcap' for one company, 'microcaps' for several.
Patterns
- a microcap company
- invest in microcaps
- microcap stocks
He specializes in finding promising microcaps before they grow.
The fund holds a mix of large-caps and microcaps to balance risk.
Microcaps can be more volatile than larger, more established companies.
adjectivebefore a nounbusinessfinance
Relating to companies with a very small market value.
Grammar: Used before a noun, as in 'microcap stock' or 'microcap fund'.
Patterns
- microcap stock
- microcap fund
- microcap company
She invests in microcap stocks despite the higher risk.
The microcap sector often attracts investors looking for high growth.
A microcap fund typically holds shares in dozens of tiny companies.
Word forms
| plural | microcaps |
|---|
Common combinations
- microcap stock
- He bought microcap stock in a small biotech firm.
- microcap company
- The microcap company had only 20 employees.
- microcap fund
- She put her savings into a microcap fund.
- invest in microcaps
- They decided to invest in microcaps for higher potential returns.
- microcap sector
- The microcap sector can be very volatile.
Synonyms and how they differ
- small-cap
- Small-cap refers to companies with a market value between about $300 million and $2 billion, so it is larger than a microcap.
- penny stock
- Penny stock often means a stock trading at a very low price, which may or may not be a microcap; penny stocks can also be larger companies.
Opposites
Word family
- microcapitalization noun
- The state or condition of being a microcap company.
Commonly confused: microcap or microchip?
microcap vs microchip
Microchip is a small electronic circuit; microcap is a finance term for a tiny company.
Practice
Which sentence uses 'microcap' correctly?
Choose one answer.
Option 0 is correct because 'microcap' describes a company with a very small market value. Option 1 confuses 'microcap' with 'microchip'. Option 2 is wrong because you invest in a microcap to seek returns, not a salary. Option 3 is nonsense; 'microcap' is not a physical object.
Make it your own
Write a sentence using “microcap”, then check it and compare it with the examples above.