Definitions

from The American Heritage® Dictionary of the English Language, 5th Edition.

  • adjective Of or relating to companies whose retained earnings are very small and whose outstanding shares of common stock have a very small market value.
  • noun A microcap company.

from Wiktionary, Creative Commons Attribution/Share-Alike License.

  • noun US, finance The stock of a public company with a market capitalization of roughly $300 million or less.

Etymologies

from Wiktionary, Creative Commons Attribution/Share-Alike License

micro- +‎ cap (short for capitalization)

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Examples

  • The SEC said the suspensions, which last through March 27, are part of the SEC's stepped-up effort to address fraud involving "microcap" securities.

    SEC Halts Trading in 26 Firms 2008

  • The likely IPO valuation: at least 10 times higher than what was promised to him from that OTCBB IPO, which was to be sponsored by a "microcap" broker with a dubious record from earlier Chinese OTCBB deals.

    U.S. to Police OTCBB IPOs, Reverse Mergers for Chinese Stocks: It's About Time - Seeking Alpha 2011

  • "They may be called penny stocks, but victims of microcap fraud can suffer devastating losses," said Robert Khuzami , director of the SEC's division of enforcement.

    SEC Fires Salvo at 'Penny Stocks' Jessica Holzer 2011

  • Next, I excluded microcap stocks, setting $1 billion as the minimum market capitalization.

    It's Time to Focus on Revenues James B. Stewart 2011

  • The mass trading suspensions represent the SEC's first action to call attention to possible "penny stock" promotion schemes since it began a stepped-up effort last fall to crack down on the proliferation of microcap stock fraud.

    SEC Fires Salvo at 'Penny Stocks' Jessica Holzer 2011

  • J.D. Joyce, senior vice president of investments for UBS Financial Services in Houston, was surprised by some microcap balance sheets recently.

    Smallest Shares Go Their Own Way Rob Curran 2011

  • Prosecutors said the former TV star was part of an "illicit kickback scheme to manipulate the volume and price of microcap stocks and illegally generate stock sales."

    CHiPs Star Larry Wilcox Charged with Securities Fraud 2010

  • Box of Chocolates One of Mr. Hodges's microcap picks is Rocky Mountain Chocolate Factory , a growing company that pays a dividend.

    Smallest Shares Go Their Own Way Rob Curran 2011

  • I also excluded microcap stocks, setting $1 billion as the minimum market capitalization.

    Five Stocks for Your Wish List James B. Stewart 2011

  • Indeed, a rising tide most definitely does not lift all microcap boats.

    Smallest Shares Go Their Own Way Rob Curran 2011

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