Mid Cap

The term "mid cap" is typically used to refer to companies with a market cap of between $2 billion and $10 billion. In comparison, large cap companies have a market cap of $10 billion or more, and small cap companies have a market cap of less than $2 billion. Mid cap stocks are generally considered to be less risky than small cap stocks, but more risky than large cap stocks. This is because the companies they represent are typically larger and more established than small cap companies, but may not have the same level of stability and earnings power as large cap companies. Mid cap stocks may offer a balance of potential for growth and stability compared to small and large cap stocks.

Small and Mid-Cap Securities Risks:

The stocks of both small and medium capitalization companies involve substantial risk. These companies may have limited product lines, markets or financial resources, and they may be dependent on a limited management group. Stocks of these companies may be subject to more abrupt or erratic market movements than those of larger, more established companies or the market averages in general.