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Glossary · PSX term

Small-cap stock.

A small-cap is a company with a relatively small market capitalisation and usually lower trading liquidity.

Definition

Small caps can offer higher growth potential but tend to be more volatile and harder to buy or sell in size. On the PSX, thin liquidity means small caps can hit upper or lower locks quickly on modest order flow.

Worked example

A small fertiliser or textile company with a market cap of a few billion rupees and light daily volume is a small-cap.

Related on PSX Clarity

Term
Market capitalization
Term
Liquidity
Term
Blue-chip stock

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