“Large cap” refers to a classification of companies based on their market capitalization, which is the total value of all their outstanding shares. Large cap companies are typically those with the largest market capitalizations among publicly traded companies. While there is no universally agreed-upon cutoff, large cap companies are generally considered to have market capitalizations above a certain threshold, which can vary depending on the context and the source. However, they are generally regarded as companies with market capitalizations over $10 billion.
Large cap companies are often well-established, mature businesses with a significant market presence and are generally considered to be less volatile compared to small and mid-cap companies. Investors often view large cap stocks as more stable investments, offering relatively steady returns over time. Examples of large cap companies include multinational corporations like Apple Inc., Microsoft Corporation, and Exxon Mobil Corporation.
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