Some stocks share something with Captain America ๐ฆธ
A large cap!
Well, a large market capitalization at least ๐คท
As a reminder, market capitalization is the total value of a company on a stock market ๐
Itโs calculated by multiplying outstanding stocks and the price of 1 stock.
Large cap stocks are companies that have a market capitalization of $10 billion or more ๐ฐ
Thatโs a lot of money!
These stocks are often considered safer investments due to their size and established market position ๐ช
They are typically well-known, blue-chip companies with a long track record of stability and success ๐ฆ
Some examples of large-cap stocks include Apple, Microsoft, and Amazon. ๐๐ป๐ฆ
Investing in large cap stocks can provide a steady stream of income since many, but not all, offer dividends ๐ธ
A dividend is a quarterly payout proportional to how much stock you own ๐ค
Apple offers dividends for example!
Due to their size and popularity, large cap stocks are often more heavily traded and may have greater liquidity, making them easier to buy and sell ๐น
However, the potential for growth may be limited as these companies are already established and may not experience significant price appreciation ๐
Another downside of investing in large cap stocks is that they may be more sensitive to economic downturns or market shifts, as their size and market position can make it harder to pivot quickly ๐
Overall, large caps are often very popular since they tend to be from large, established and therefore well known companies โจ
Always do your research since sometimes new startups can disrupt old markets!