Stocks get grouped into different "Caps" based on the size of the company. Letโ€™s meet Large Cap stocks!

Some stocks share something with Captain America ๐Ÿฆธ A large cap!

Well, a large market capitalization at least ๐Ÿคท

As a reminder, market capitalization is the total value of a company on a stock market ๐Ÿ™‰

Itโ€™s 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 ๐Ÿ’ฐ

Thatโ€™s a lot of money!

These stocks are often considered safer investments due to their size and established market position ๐Ÿ’ช

They are typically well-known, blue-chip companies with a long track record of stability and success ๐Ÿฆ

Some examples of large-cap stocks include Apple, Microsoft, and Amazon. ๐ŸŽ๐Ÿ’ป๐Ÿ“ฆ

Investing in large cap stocks can provide a steady stream of income since many, but not all, offer dividends ๐Ÿ’ธ

A dividend is a quarterly payout proportional to how much stock you own ๐Ÿค‘ 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 ๐Ÿ’น

However, the potential for growth may be limited as these companies are already established and may not experience significant price appreciation ๐Ÿ“‰

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 ๐Ÿ“‰

Overall, large caps are often very popular since they tend to be from large, established and therefore well known companies โœจ

Always do your research since sometimes new startups can disrupt old markets!

Test your knowledge

A large cap stock is a company with a market cap of. . .

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What is a potential advantage of investing in large cap stocks?

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What is a potential downside of investing in large cap stocks?

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