Nasdaq SmallCap Market

DEFINITION of 'Nasdaq SmallCap Market'

The Nasdaq equity market for companies that have relatively small levels of market capitalization. Listing requirements for such "small cap" companies on the Nasdaq SmallCap Market are less stringent than for other Nasdaq markets that list larger companies with significantly higher market capitalization. In 2005, the Nasdaq SmallCap Market was renamed the Nasdaq Capital Market in order to reflect its core function of raising capital.

BREAKING DOWN 'Nasdaq SmallCap Market'

The Nasdaq Capital Market makes it relatively easier for early-stage companies to get listed compared to other senior exchanges with more onerous requirements. In order to list initially on the Nasdaq Capital Market, companies must meet all of the criteria under at least one of three listing standards - the equity standard, the market value of listed securities standard, or the total assets/total revenue standard.

RELATED TERMS
  1. Nasdaq National Market Securities ...

    The Nasdaq National Market consists of over 3000 companies that ...
  2. NASDAQ Global Market Composite

    An index made up of stocks that represent the Nasdaq Global Market. ...
  3. NASDAQ Global Select Market Composite

    A market capitalization-weighted index made up of U.S.-based ...
  4. FTSE NASDAQ 500 Index

    Introduced in July 2005, the FTSE NASDAQ 500 is one of four indexes ...
  5. Listed

    Being included and traded on a given exchange. Most exchanges ...
  6. Nasdaq

    A global electronic marketplace for buying and selling securities, ...
Related Articles
  1. Markets

    How Nasdaq Makes Money

    NASDAQ provides a marketplace which offers money-making opportunities to investors. Investopedia explains how NASDAQ makes money.
  2. Markets

    Why Do Companies Choose NASDAQ for Their IPO?

    The NYSE is known for its prestige so why do some companies opt to list on the NASDAQ instead?
  3. Investing

    Understanding NASDAQ

    NASDAQ is an acronym that stands for the National Association of Securities Dealers Automated Quotation system.
  4. Investing

    The NYSE And Nasdaq: How They Work

    Learn some of the important differences in the way these exchanges operate and the securities that trade on them.
  5. Markets

    Nasdaq Stock Trades Ex-Dividend Wednesday (NDAQ)

    Nasdaq will send its dividend payment on June 24 to shareholders of record as of June 10.
  6. Investing

    The Dirt On Delisted Stocks

    Listed securities are "the cream of the crop". Find out how a firm can lose that status and why you should be wary.
  7. ETFs & Mutual Funds

    IJS: iShares S&P Small-Cap 600 Value ETF

    Learn how the iShares S&P Small-Cap 600 Value exchange-traded fund is managed, which benchmark it tracks and for whom it is most appropriate.
  8. ETFs & Mutual Funds

    The Top 5 Small-Cap Core ETFs for 2016 (VTWO, IJR)

    Learn how to get broad exposure to the U.S. small-cap equities market by investing in one of the top five exchange-traded funds for 2016.
  9. Managing Wealth

    How to Make Small-Caps Win for Your Portfolio

    Small-cap stocks can offer generous returns, but you need to know how to find the right ones. Here's a little help.
  10. ETFs & Mutual Funds

    ETF Analysis: WisdomTree SmallCap Earnings

    Discover the WisdomTree Small Cap Earnings ETF, a fund with a special focus on small-cap and micro-cap stocks with positive earnings.
RELATED FAQS
  1. What are the advantages and disadvantages of listing on the Nasdaq versus other stock ...

    Discover some of the primary advantages and disadvantages that exist for companies listed on the Nasdaq exchange rather than ... Read Answer >>
  2. What are the listing requirements for the Nasdaq?

    Major stock exchanges, like the Nasdaq, are exclusive clubs - their reputations rest on the companies they trade. As such, ... Read Answer >>
  3. What is the difference between the QQQ ETF and other indexes?

    Find out more about the PowerShares QQQ Trust, the index the QQQ tracks, and the difference between QQQ, the SPY and Nasdaq ... Read Answer >>
  4. Do you recommend the Nasdaq 100, S&P 500, or a 50/50 allocation?

    My job is now offering two large-cap stocks. The S&P 500 Index and Nasdaq 100 Index. I've read a bit about the debate on ... Read Answer >>
  5. Why is the Nasdaq more heavily weighted to tech stocks than other stock exchanges?

    Learn how the Nasdaq attracts technology companies due to its focus on using advanced financial technology to improve the ... Read Answer >>
  6. Where can I find all of the stocks in the Nasdaq Composite Index?

    Few stock market indices are as misunderstood as the Nasdaq Composite Index. Due to the burst of the dotcom bubble in 20 ... Read Answer >>
Hot Definitions
  1. Quantitative Trading

    Trading strategies based on quantitative analysis which rely on mathematical computations and number crunching to identify ...
  2. Bond Ladder

    A portfolio of fixed-income securities in which each security has a significantly different maturity date. The purpose of ...
  3. Duration

    A measure of the sensitivity of the price (the value of principal) of a fixed-income investment to a change in interest rates. ...
  4. Dove

    An economic policy advisor who promotes monetary policies that involve the maintenance of low interest rates, believing that ...
  5. Cyclical Stock

    An equity security whose price is affected by ups and downs in the overall economy. Cyclical stocks typically relate to companies ...
  6. Front Running

    The unethical practice of a broker trading an equity based on information from the analyst department before his or her clients ...
Trading Center