On the basis of historical data from the 1948-2002 period, the return on the average common stock has fluctuated less than the return on the average stock of small firms.

Common Stock

An ownership stake in a corporation that provides the shareholder with voting capabilities and a claim on the company's profits through dividends.

Stock Of Small Firms

Stock Of Small Firms refers to the equity securities issued by companies with a small market capitalization, often characterized by higher volatility and potentially higher growth prospects than larger companies' stocks.