The meanings of big cap and small cap are generally understood by their names. Big cap stocks—also referred to as large cap stocks—are shares of larger companies. Small cap stocks, on the other hand, are shares of smaller companies. Labels like these can often be misleading because many people run under the assumption that they can only make money by investing in large cap stocks. And that can't be further from the truth—especially nowadays. If you don't realize how big small cap stocks have become, you'll miss some good investment opportunities.
Small cap stocks are considered good investments due to their low valuations and potential to grow into big cap stocks, but the definition of a small cap has changed over time. What was considered a big cap stock i

Issued Share Capital vs. Subscribed Share Capital: An Overview
Share capital refers to the amount of funding a company raises through the sale of shares of stock to public investors. This means the company grants shareholders a small ownership stake in the company in exchange for monetary investment. Share capital constitutes the main source of equity financing and can be generated through the sale of common or preferred shares.
Common stock is what most people think of when they talk about the stock market. Common, or ordinary, shareholders have voting rights and participate in major company decisions. Though companies at times pay dividends on common shares, they are no

Preference shares—commonly referred to as preferred stock—have a number of benefits and drawbacks for both issuing companies and investors.
Preference Shares: An Overview
Companies issue preference shares to raise capital. Preference shares carry many of the benefits of both debt and equity capital and are considered to be a hybrid security.
A benefit for investors who hold preference shares is that they receive dividend payments before common stock shareholders. A drawba