Investment Essentials: Market Cap

Stock can be classified further than simply growth, value, etc. Most of the time, they are also classified by their market capitalization. It's a fancy term that means size. If you ever hear someone talking about a large cap or a mid-cap or even a small cap, this is what they are referring to.

A large-cap stock is a stock in a company that is worth over $10 billion. These are generally harder stocks to get a piece of for a value because they are generally stocks of well-known track record proven companies. Most believe that because a company has been around for a long time and because they are a large-cap, they are unsinkable. However, one only need remember the history of the Titanic to know that there is no such thing as unsinkable. I would however argue that they are harder to kill than a small-cap.