What is a small-cap stock? A company worth under $2 billion with massive growth potential for investors What is a small-cap stock? A company worth under $2 billion with massive growth potential for investors Ramsay LewisDec 23, 2020, 21:05 IST Often representing young companies, small-cap stocks pose more risks - but also potentially higher rewards - for investors willing to take a chance on a lesser-known firm.Spencer Platt / Staff/Getty Images Small-cap stocks ("small-caps") are companies that have a market capitalization value between $300 million and $2 billion. Small-cap stocks are usually new companies, those who are focused on a niche market, or those that are struggling financially.