Colloquial term for a security traded on a stock exchange with a very low total capitalization, either due to a very low share price or a small number of shares. The possibility of changing the price with little money is much greater, so it is occasionally subject to speculative pressures. The qualification of ‘high’ or ‘low capitalization’ depends on the market, as in the United States the limit would be one billion dollars and in Spain one hundred million euros.
« Back to Glossary IndexChicharro
« Back to Glossary Index