The size premium is the historical tendency for the stocks of firms with smaller
market capitalization
Market capitalization, sometimes referred to as market cap, is the total value of a publicly traded company's outstanding common shares owned by stockholders.
Market capitalization is equal to the market price per common share multiplied by ...
s to outperform the stocks of firms with larger
market capitalization
Market capitalization, sometimes referred to as market cap, is the total value of a publicly traded company's outstanding common shares owned by stockholders.
Market capitalization is equal to the market price per common share multiplied by ...
s. It is one of the factors in the
Fama–French three-factor model
In asset pricing and portfolio management, the Fama–French three-factor model is a statistical model designed in 1992 by Eugene Fama and Kenneth French to describe stock returns. Fama and French were colleagues at the University of Chicago Boo ...
.
Here Come Small Caps Going back to 1979, December... , The Irrelevant Investor
See also
* Liquidity premium
* Risk premium
A risk premium is a measure of excess return that is required by an individual to compensate being subjected to an increased level of risk. It is used widely in finance and economics, the general definition being the expected risky Rate of retur ...
* Style investing
References
External links
*
Stock market
{{finance-stub