Sunday, December 26, 2010

Large-Cap Stocks

Large cap stocks refer to companies with a large market capitalization. Market capitalization is basically the number of shares on issue, times the market price e.g. if a company has 10,000,000 shares on issue and the market price is $100 then the market capitalisation of that company would be $1,000,000,000. The general understanding is that large cap stocks have a market cap of $2 billion or more. Each stock market of each country will see a different distribution, for example a smaller country may define large caps as companies bigger than $500 million. Large cap stocks are sometimes also referred to as blue chips.

Synonyms: Big caps, Large capitalization, Blue chips, Large companies

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