What is the difference between small-cap stocks, mid-cap stocks, and large cap stocks?
Market capitalization is the market value of firm's stock, it is the product of number of outstanding share and Market price of stock. Based on Market capitalization, Firms are classified in three major categories-
The basic difference between in above three is given as below -
Large-cap stocks | Mid-cap stocks | Small-cap Stocks | |
Market Capitalization (Market Value) | Above $ 10 billions | $ 2 to $ 10 billions | Below $ 2 billions |
Risk | Less Risky | More risky than large-cap stocks | More risky than large and mid cap stocks |
Growth Potential | Less than mid-cap and small-cap | Higher than large-cap | Higher than large-cap and mid cap stocks |
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