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Definition

<p style="text-align: justify;">An <span class="glossary" style="border-bottom: 1px dotted black; cursor: pointer;">index</span> of those <span class="glossary" style="border-bottom: 1px dotted black; cursor: pointer;">shares</span> which are not in the top 100 companies <span class="glossary" style="border-bottom: 1px dotted black; cursor: pointer;">listed</span> on the <span class="glossary" style="border-bottom: 1px dotted black; cursor: pointer;">JSE</span> by <span class="glossary" style="border-bottom: 1px dotted black; cursor: pointer;">market capitalisation</span>. Alternatively, shares with a market capitalisation of less than R1bn. The JSE's <span class="glossary" style="border-bottom: 1px dotted black; cursor: pointer;">top 40 index</span> contains the 40 largest companies on the JSE. The <span class="glossary" style="border-bottom: 1px dotted black; cursor: pointer;">mid-cap</span> index includes the next 60 largest and the small cap index contains the balance. Small cap shares are more <span class="glossary" style="border-bottom: 1px dotted black; cursor: pointer;">risky</span>, but often have the potential to generate a better <span class="glossary" style="border-bottom: 1px dotted black; cursor: pointer;">capital gain</span>. As the <span class="glossary" style="border-bottom: 1px dotted black; cursor: pointer;">economy</span> recovers from a <span class="glossary" style="border-bottom: 1px dotted black; cursor: pointer;">recession</span>, the large <span class="glossary" style="border-bottom: 1px dotted black; cursor: pointer;">blue chip</span> shares will generally move up first, followed by the mid-caps and finally the small cap shares.</p>