Large Cap

The term "large cap" is typically used to refer to publicly traded companies with a market capitalization of $10 billion or more. In comparison, mid cap companies have a market cap of between $2 billion and $10 billion, and small cap companies have a market cap of less than $2 billion. Large cap stocks are generally considered to be less risky than small cap stocks because the companies they represent are typically well-established and have a track record of stable earnings. However, they may also offer less potential for growth compared to small cap stocks.

Large Capitalization Risks:

Large-capitalization companies may be less able than smaller capitalization companies to adapt to changing market conditions. Large-capitalization companies may be more mature and subject to more limited growth potential compared with smaller capitalization companies. During different market cycles, the performance of large capitalization companies has trailed the overall performance of the broader securities markets.