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

If you have any questions, or disagree with the definition, or if you have anything to add then please do add your comments in the box below.

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