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Describing a publicly-traded company with large amount of market capitalization. Though there is no fixed measurement, a large-capitalization company typically has a market capitalization over $5 billion or $10 billion. Some brokerages or exchanges have slightly different definitions of large-capitalization. Some indexes track large-capitalization companies, as do some exchange traded funds. See also: Mid-Cap, Low-Cap.

Large-capitalization (large-cap) stock.

The stock of companies with market capitalizations typically of $10 billion or more is known as large-cap stock. Market cap is figured by multiplying the number of either the outstanding or floating shares by the current share price.

Large-cap stock is generally considered less volatile than stock in smaller companies, in part because the bigger companies may have larger reserves to carry them through economic downturns.

However, market capitalization is always in flux. Today's large-cap stock can drop out of that category if the share price plunges either in a general market downturn or as a result of internal problems.

And the opposite is true as well. Many of the country's largest companies began life as start-ups.

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Pasternak's belief that large cap stocks should outperform small caps, he is planning to take a long position in consumer paper products maker Kimberly Clark (NYSE:KMB).
In one of TWST's hallmark roundtable discussions, a distinguished panel of analysts reviews at great length the performance of the MEDICAL TECHNOLOGY / LARGE CAP STOCKS industry, and examines the factors that determine the success of companies within the sector.
General Electric (NYSE: GE): The largest of the large cap stocks is growing at a robust 14%/ Management's keeping an eye on costs and is sitting on $7 billion in cash.
Large cap stocks - stocks that typically have at least $5 billion in outstanding market value - are also poised to do well in 2006.