Definition of mosquito for English Language Learners. : a small flying insect that bites the skin of people and animals and sucks their blood.
What it is: Small-cap stock refers to a company with a market capitalization (calculated by taking a firm's current share price and multiplying that figure by the total number of shares outstanding) near the low end of the publicly traded spectrum.
Answering the Small-Cap Skeptics. Skeptics argue that small caps may not outperform because the forward price-earnings ratio (PE) of Russell 2000 stocks is higher than the forward PE ratio of S&P 500 stocks â 15.1 vs. 13.3.Although true, this is a half truth in two respects.id-cap stocks did best of all at 7.08% (more on them later): Source: Bloomberg. In fact, the small-cap Russell 2000 Index (^RUT) hit 12 new all-time closing highs in January, whereas the large-cap S&P 500 Index (^SPX) remains 4% below its 2007 all-time high.