Today on the Finance Flash Go! podcast, it’s trap or cap time. So let’s go find out what small cap, mid cap and large cap stocks are!
A stock’s “cap” refers to its relative size in the market.
Large cap refers to a company with a market capitalization value of greater than $10 billion.
Market capitalization is calculated by multiplying the number of a company’s shares by its stock price per share.
A company’s stock is the generally classified as large cap, mid cap or small cap.
Mid is the next size down and small is obviously the smallest.
It’s just a size thing and bigger is not always better (no puns intended!).
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