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. Investing

    How Nasdaq Makes Money

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

    Understanding NASDAQ

    NASDAQ is an acronym that stands for the National Association of Securities Dealers Automated Quotation system.
  3. Mutual Funds & ETFs

    Index Investing: The Nasdaq Composite Index

    The Nasdaq Composite Index represents all the stocks that trade on the Nasdaq stock market. The recent surge in popularity of technological stocks has launched the Nasdaq into the spotlight. ...
  4. Retirement

    Electronic Trading: The Nasdaq Vs. The NYSE

    From a glance, the difference between the New York Stock Exchange (NYSE) and Nasdaq may not be marked. The NYSE lists household names like Coca-Cola, Wal-Mart, Citicorp, and General Electric, ...
  5. Professionals

    The National Association of Securities Dealers Automated Quotation System (Nasdaq)

    FINRA Series 6 Exam Study Guide - The National Association of Securities Dealers Automated Quotation System (Nasdaq). Deals with types of security issues and stock quotation service levels
  6. Professionals

    NASDAQ Subscription Levels

    Broker dealers will subscribe to the NASDAQ workstation services that meet their firm’s requirements. The levels of service are: Level I: NASDAQ Level I subscription service provides information ...
  7. Professionals

    Introduction

    Securities that are not listed on any of the traditional exchanges trade over the counter or on the NASDAQ. NASDAQ stands for National Association of Securities Dealers Automated Quotation System. ...
  8. Investing Basics

    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.
  9. Mutual Funds & ETFs

    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.
  10. Professionals

    Trading Over The Counter And NASDAQ Securities

    Series 55
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. 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 >>
  4. 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 >>
  5. What are the most important equity market indexes?

    Discover the most important equity market indexes. Stock market indexes are tools to evaluate the performance of the stock ... Read Answer >>
  6. How do the risks of large cap stocks differ from the risks of small cap stocks?

    Understand the important differences between large- and small-cap companies that make small-cap firms a more risky equity ... Read Answer >>
Hot Definitions
  1. Law Of Demand

    A microeconomic law that states that, all other factors being equal, as the price of a good or service increases, consumer ...
  2. Cost Of Debt

    The effective rate that a company pays on its current debt. This can be measured in either before- or after-tax returns; ...
  3. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
  4. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  5. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
  6. Society for Worldwide Interbank Financial Telecommunications ...

    A member-owned cooperative that provides safe and secure financial transactions for its members. Established in 1973, the ...
Trading Center