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 Global Select Market Composite

    NASDAQ Global Select Market Composite is a market capitalization-weighted ...
  2. C

    A Nasdaq stock symbol indicating the issuer has been granted ...
  3. QQQQ

    The QQQQ is the original ticker symbol for the Nasdaq 100 Trust ...
  4. Member

    A member is a brokerage firm (or broker) holding membership on ...
  5. Small Cap

    Refers to stocks with a relatively small market capitalization. ...
  6. Last-Sale Reporting

    An electronic entry, to the Nasdaq stock market, of the amount ...
Related Articles
  1. Investing

    How Nasdaq Continues To Innovate

    For centuries, a stock market was a physical arena where buyers and sellers traded shares. Then the NASDAQ opened and changed everything.
  2. Insights

    Nasdaq Goes to Bat for Company Founders

    Jeff Thomas, Nasdaq's head of West Coast operations, outlines why the exchange is making a case for startups.
  3. Investing

    Small-Cap ETFs: Better Late Than Never?

    Small-cap stocks and ETFs are on a tear, but there are macro issues that could limit near-term upside.
  4. Investing

    5 Best US Small-Cap Index Mutual Funds

    Read about different small-cap mutual funds that are available for investors. Learn about how the small-cap indexes have higher volatility.
  5. Investing

    How to Ride the Small-Cap Rally (IWM,SCHA)

    Small-caps are on a bullish tear. Here's how to play the rally.
  6. Investing

    Breaking Down the First Trust NASDAQ ABA Community Bank ETF (QABA)

    Get an analysis of the First Trust NASDAQ ABA Community Bank ETF, the single best pure-play ETF for investors seeking exposure to small-cap bank stocks.
  7. Investing

    Pricey Small-Caps Could Be Bad for ETFs

    Small-cap stocks are getting really expensive and that could weigh on the related ETFs.
  8. Investing

    The Top 5 Small Cap Mutual Funds for 2016

    Learn about small-cap mutual funds that are poised for solid performance in 2016. Understand how the small-cap market has higher volatility and risk.
  9. Investing

    Quality Ideas for Small-Cap Exposure

    With some small-cap ETFs, it is not always about the size factor. Quality matters too.
  10. Investing

    The 4 Largest Small-Cap ETFs (IWM, IJR)

    Learn about how U.S. small-cap stocks have performed in 2016 and over the past year, and the top four largest U.S. small-cap ETFs by assets under management.
RELATED FAQS
  1. What are the listing requirements for the Nasdaq?

    Learn what it takes to be on the Nasdaq. Only companies with a solid history and top-notch management behind them are considered. Read Answer >>
  2. 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 >>
  3. How do I invest in the Nasdaq or the NYSE? Is it even possible? Would I want to? ...

    The Nasdaq and the NYSE are stock exchanges that trade securities. Nasdaq stands for National Association of Securities Dealers ... Read Answer >>
  4. What is the difference between market capitalization and shares outstanding?

    Understand the relationship between shares outstanding and market capitalization and how market cap is interpreted to establish ... Read Answer >>
  5. What should I use as a benchmark for my small-cap stock portfolio?

    The Russell 2000 and S&P SmallCap 600 are two of the best indexes to use as a benchmark for small-cap performance. Read Answer >>
  6. What is the difference between market capitalization and equity?

    Understand the difference between market capitalization and equity, two primary measurements used to evaluate the worth of ... Read Answer >>
Hot Definitions
  1. Capital Asset Pricing Model - CAPM

    Capital Asset Pricing Model (CAPM) is a model that describes the relationship between risk and expected return and that is ...
  2. Return On Equity - ROE

    The profitability returned in direct relation to shareholders' investments is called the return on equity.
  3. Working Capital

    Working capital, also known as net working capital is a measure of a company's liquidity and operational efficiency.
  4. Bond

    A bond is a fixed income investment in which an investor loans money to an entity (corporate or governmental) that borrows ...
  5. Compound Annual Growth Rate - CAGR

    The Compound Annual Growth Rate (CAGR) is the mean annual growth rate of an investment over a specified period of time longer ...
  6. Net Present Value - NPV

    Net Present Value (NPV) is the difference between the present value of cash inflows and the present value of cash outflows ...
Trading Center