Small Firm Effect
The theory holds that smaller companies have a greater amount of growth opportunities than larger companies. Small cap companies also tend to have a more volatile business environment, and the correction of problems - such as the correction of a funding deficiency - can lead to a large price appreciation. Finally, small cap stocks tend to have lower stock prices, and these lower prices mean that price appreciations tend to be larger than those found among large cap stocks.
Investment dictionary. Academic. 2012.
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Small-firm effect — The tendency of small firms ( in terms of total market capitalization) to outperform the stock market (consisting of both large and small firms). The New York Times Financial Glossary … Financial and business terms
small-firm effect — The tendency of small firms ( in terms of total market capitalization) to outperform the stock market (consisting of both large and small firms). Bloomberg Financial Dictionary … Financial and business terms
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small arm — small armed, adj. Usually, small arms. a firearm designed to be held in one or both hands while being fired: in the U.S. the term is applied to weapons of a caliber of up to one in. (2.5 cm). [1680 90] * * * ▪ military technology Introduction… … Universalium
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watercooler effect — n. The effect created by two or more employees having an informal, face to face conversation, as though at a watercooler. Example Citation: There also was the watercooler effect, or the theory that people come up with their best ideas when… … New words
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