January 1, 2001
 FUND PROFILE
T. ROWE PRICE
Small-Cap Stock Fund

 A stock fund seeking long-term capital growth through investments in securities
 of small companies.
This profile summarizes key information about the fund that is included in the
fund's prospectus. The fund's prospectus includes additional information about
the fund, including a more detailed description of the risks associated with
investing in the fund that you may want to consider before you invest. You may
obtain the prospectus and other information about the fund at no cost by calling
1-800-638-5660, or by visiting our Web site at www.troweprice.com.
TROWEPRICELOGO






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FUND PROFILE
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 What is the fund's objective?

   The fund seeks to provide long-term capital growth by investing primarily in
   stocks of small companies.


 What is the fund's principal investment strategy?

   The fund will invest at least 65% of total assets in stocks of small
   companies. A small company is defined as having a market capitalization that
   falls within the range of companies in the Russell 2000 Index, a widely used
   benchmark for small-cap stock performance. Stock selection may reflect either
   a growth or value investment approach. When choosing stocks, we generally
   look for the following characteristics:

  . capable management;

  . attractive business niches;

  . pricing flexibility;

  . sound financial and accounting practices;

  . a demonstrated ability to grow revenues, earnings, and cash flow
   consistently; and

  . the potential for a catalyst (such as increased investor attention, asset
   sales, or a change in management) to cause the stock's price to rise.

   We may also select stocks on certain growth or value considerations. For
   example, we may look for a company whose price/earnings ratio is attractive
   relative to the underlying earnings growth rate. A value stock would be one
   where the stock price appears undervalued in relation to earnings, projected
   cash flow, or asset value per share.

   Holdings will be widely diversified by industry and company; under most
   circumstances, the fund will invest less than 1.5% of its total assets in any
   single company. The fund will not sell a stock just because the company has
   grown to a market capitalization outside the range of the Russell 2000, and
   it may, on occasion, purchase companies with a market capitalization above
   the range.

   While most assets will be invested in U.S. common stocks, other securities
   may also be purchased, including foreign stocks, futures, and options, in
   keeping with fund objectives.

   The fund may sell securities for a variety of reasons, such as to secure
   gains, limit losses, or redeploy assets into more promising opportunities.



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FUND PROFILE
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   Further information about the fund's investments, including a review of
   market conditions and fund strategies and their impact on performance, is
   available in the annual and semiannual shareholder reports. To obtain free
   copies of either of these documents, call 1-800-638-5660.


 What are the main risks of investing in the fund?

   As with all equity funds, this fund's share price can fall because of
   weakness in the broad market, a particular industry, or specific holdings.
   The market as a whole can decline for many reasons, including adverse
   political or economic developments here or abroad, changes in investor
   psychology, or heavy institutional selling. The prospects for an industry or
   company may deteriorate because of a variety of factors, including
   disappointing earnings or changes in the competitive environment. In
   addition, our assessment of companies held in the fund may prove incorrect,
   resulting in losses or poor performance even in a rising market. Finally, the
   fund's investment approach could fall out of favor with the investing public,
   resulting in lagging performance versus other types of stock funds.

   Investing in small companies involves greater risk than is customarily
   associated with larger companies. Stocks of small companies are subject to
   more abrupt or erratic price movements than larger-company stocks. Small
   companies often have limited product lines, markets, or financial resources,
   and their managements may lack depth and experience. Such companies seldom
   pay significant dividends that could cushion returns in a falling market.

   In general, stocks with growth characteristics can have relatively wide price
   swings as a result of their potentially high valuations. Stocks with value
   characteristics carry the risk that investors will not recognize their
   intrinsic value for a long time or that they are actually appropriately
   priced at a low level. Because this fund holds stocks with both growth and
   value characteristics, its share price may be negatively affected by either
   set of risks.

   Foreign stock holdings are subject to the risk that some holdings may lose
   value because of declining foreign currencies or adverse political or
   economic events overseas. Investments in futures and options, if any, are
   subject to additional volatility and potential losses.

   As with any mutual fund, there can be no guarantee the fund will achieve its
   objective.

  . The fund's share price may decline, so when you sell your shares, you may
   lose money. An investment in the fund is not a deposit of a bank and is not
   insured or guaranteed by the Federal Deposit Insurance Corporation or any
   other government agency.



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FUND PROFILE
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 How can I tell if the fund is appropriate for me?

   Consider your investment goals, your time horizon for achieving them, and
   your tolerance for risk. If you seek an aggressive, long-term approach to
   capital growth through small-company stocks, the fund could be an appropriate
   part of your overall investment strategy. This fund should not represent your
   complete investment program or be used for short-term trading purposes.

   The fund can be used in both regular and tax-deferred accounts, such as IRAs.

  . Equity investors should have a long-term investment horizon and be willing
   to wait out bear markets.


 How has the fund performed in the past?

   The bar chart showing calendar year returns and the average annual total
   return table indicate risk by illustrating how much returns can differ from
   one year to the next and over time. Fund past performance is no guarantee of
   future returns.

   The fund can also experience short-term performance swings, as shown by the
   best and worst calendar quarter returns during the years depicted in the
   chart.

LOGO



                              Calendar Year Total Returns
          "91"   "92"    "93"   "94"  "95"   "96"   "97"   "98"   "99"   "00"
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          38.60  13.91*  18.40  0.08  33.85  21.05  28.81  -3.46  14.66  16.49
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FUND PROFILE
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          Quarter ended              Total return

 Best quarter                            3/31/91 21.07%

 Worst quarter                           9/30/98 -19.39%



 /*/
   T. Rowe Price became the fund's investment manager on August 31, 1992.


 Table 1  Average Annual Total Returns

                            Periods ended 12/31/2000
                         1 year     5 years      10 years
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  Small-Cap Stock Fund   16.49%      14.99%       17.54%

  Russell 2000 Index     -3.02       10.31        15.53
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 These figures include changes in principal value, reinvested dividends, and
 capital gain distributions, if any.


 What fees or expenses will I pay?

   The fund is 100% no load. There are no fees or charges to buy or sell fund
   shares, reinvest dividends, or exchange into other T. Rowe Price funds. There
   are no 12b-1 fees.



 Table 2 Fees and Expenses of the Fund

                                              Annual fund operating expenses
                                       (expenses that are deducted from fund assets)
 ------------------------------------------------------------------------------------
                                   
  Management fee                                          0.77%/ // /
  Other expenses                                          0.19%
  Total annual fund operating                             0.96%/ // /
  expenses
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   Example.  The following table gives you a rough idea of how expense ratios
   may translate into dollars and helps you to compare the cost of investing in
   this fund with that of other funds. Although your actual costs may be higher
   or lower, the table shows how much you would pay if operating expenses remain
   the same, you invest $10,000, earn a 5% annual return, and hold the
   investment for the following periods:



   1 year       3 years       5 years        10 years
 -------------------------------------------------------
                                 
     $98          $306          $531          $1,178
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 Who manages the fund?

   The fund is managed by T. Rowe Price Associates, Inc. Founded in 1937, T.
   Rowe Price and its affiliates manage investments for individual and
   institutional accounts. The company offers a comprehensive array of stock,
   bond, and money market funds directly to the investing public.



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FUND PROFILE
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   Gregory A. McCrickard manages the fund day-to-day and has been chairman of
   its Investment Advisory Committee since 1992. He joined T. Rowe Price in 1986
   and has been managing investments since 1991.


 Note: The following questions and answers about buying and selling shares and
 services do not apply to employer-sponsored retirement plans. If you are a
 participant in one of these plans, please call your plan's toll-free number for
 additional information.


 How can I purchase shares?

   Fill out the New Account Form and return it with your check in the postpaid
   envelope. The minimum initial purchase is $2,500 ($1,000 for IRAs and gifts
   or transfers to minors). The minimum subsequent investment is $100 ($50 for
   IRAs, gifts or transfers to minors, or Automatic Asset Builder). You can also
   open an account by bank wire, by exchanging from another T. Rowe Price fund,
   or by transferring assets from another financial institution.


 How can I sell shares?

   You may redeem or sell any portion of your account on any business day.
   Simply write to us or call. You can also access your account at any time via
   Tele*Access /(R)/ or our Web site. We offer convenient exchange among our
   entire family of domestic and international funds. Restrictions may apply in
   special circumstances, and some redemption requests need a signature
   guarantee. A $5 fee is charged for wire redemptions under $5,000.


 When will I receive income and capital gain distributions?

   The fund distributes income and net capital gains, if any, at year-end. For
   regular accounts, income and short-term gains are taxable at ordinary income
   rates, and long-term gains are taxable at the capital gains rate.
   Distributions are reinvested automatically in additional shares unless you
   choose another option, such as receiving a check. Distributions paid to IRAs
   and employer-sponsored retirement plans are automatically reinvested.


 What services are available?

   A wide range, including but not limited to:

  . retirement plans for individuals and large and small businesses;

  . automated information and transaction services by telephone or computer;

  . electronic transfers between fund and bank accounts;

  . automatic investing and automatic exchange;

  . brokerage services; and

  . asset manager accounts.


FUND PROFILE
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T. Rowe Price Associates, Inc.
100 East Pratt Street
Baltimore, MD 21202
www.troweprice.com
LOGO
 RPS F65-035
 T. Rowe Price Investment Services, Inc., Distributor