Small-firm effect

Small-firm effect
The tendency of small firms ( in terms of total market capitalization) to outperform the stock market (consisting of both large and small firms). The New York Times Financial Glossary

Financial and business terms. 2012.

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  • Small Firm Effect — A theory that holds that smaller firms, or those companies with a small market capitalization, outperform larger companies. This market anomaly is a factor used to explain superior returns in the Three Factor Model, created by Gene Fama and… …   Investment dictionary

  • small-firm effect — The tendency of small firms ( in terms of total market capitalization) to outperform the stock market (consisting of both large and small firms). Bloomberg Financial Dictionary …   Financial and business terms

  • Neglected firm effect — The Neglected firm effect is the phenomenon of lesser known firms producing abnormally high returns on their stocks. The companies that are followed by fewer analysts will earn higher returns on average than companies that are followed by many… …   Wikipedia

  • Neglected Firm Effect — A theory that explains the tendency for certain lesser known companies to outperform better known companies. The neglected firm effect suggests that the lesser known companies are able to generate higher returns on their stock shares, because… …   Investment dictionary

  • Small Minus Big - SMB — One of three factors in the Fama and French stock pricing model. SMB accounts for the spread in returns between small and large sized firms, which is based on the company s market capitalization. This factor is referred to as the small firm… …   Investment dictionary

  • small arm — small armed, adj. Usually, small arms. a firearm designed to be held in one or both hands while being fired: in the U.S. the term is applied to weapons of a caliber of up to one in. (2.5 cm). [1680 90] * * * ▪ military technology Introduction… …   Universalium

  • small — small1 W1S1 [smo:l US smo:l] adj comparative smaller superlative smallest ▬▬▬▬▬▬▬ 1¦(size)¦ 2¦(not important)¦ 3 no small degree/achievement/task etc 4¦(young)¦ 5 small business/firm/farmer etc 6¦(letter)¦ 7 conservative with a small c /democrat… …   Dictionary of contemporary English

  • Law firm — A law firm is a business entity formed by one or more lawyers to engage in the practice of law. The primary service provided by a law firm is to advise clients (individuals or corporations) about their legal rights and responsibilities, and to… …   Wikipedia

  • watercooler effect — n. The effect created by two or more employees having an informal, face to face conversation, as though at a watercooler. Example Citation: There also was the watercooler effect, or the theory that people come up with their best ideas when… …   New words

  • Network effect — Diagram showing the network effect in a few simple phone networks. The lines represent potential calls between phones. In economics and business, a network effect (also called network externality or demand side economies of scale) is the effect… …   Wikipedia

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