(redirected from Large Cap Stock)
Also found in: Dictionary, Thesaurus.
Related to Large Cap Stock: Mid Cap Funds


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.

Mentioned in ?
References in periodicals archive ?
But almost 80% of the S&P600 Small Cap Index are up for the year and the small caps have out-performed the mid and large cap stocks for the last 6 years in a row.
The newsletter has distinguished itself by selecting large cap stocks that are diversified across a broad range of industry groups.
These are the kind of large cap stocks that are best for long- term investors.
CHICAGO -- When ranking the performance of various stock capitalizations, as defined by Wilshire over the last 5 years, the universe of Micro Cap stocks cumulatively outperformed all other capitalizations by at least 60% and Large Cap stocks by 115%.
These stocks are considered the best large cap stocks to own for the long term according to Wall Street's top players.