Small cap
A share in a smaller listed company with a comparatively low market value.
In short
As of 8 October 2026A small cap is a share in a smaller listed company. There is no official definition, but companies worth less than about 2 billion US dollars are usually counted. In Germany many of them are in the SDAX. Small caps can grow strongly, but they typically fluctuate much more and trade less than large companies.
Small caps are shares in smaller companies. Size is measured by market capitalization. There is no fixed cut-off, but companies below roughly 2 billion US dollars in market value are usually called small caps.
In Germany many of them sit in the SDAX. Small companies can grow faster, but their prices usually swing more and the spread is often wider because fewer shares change hands. The chapter on risk and diversification explains why that matters.
Example: an engineering firm worth 800 million euros is a small cap. If it loses a big contract, its share can drop 15 % in a day, while a giant like SAP absorbs such news more easily.
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As of 8 October 2026 · Educational content, not investment or tax advice.