Article

Large Cap Stock
June 07 , 2012

Listed companies are classified as large cap, mid cap and small cap. This segregation is done looking at the size of the companies. Size here means not the profitability but the market value of the company. Current price quoted in the stock exchange multiplied by the total number shares gives you the market capitalization of the company.

 A Large Cap Company has the following features:

  • Mostly they are the leaders in their respective industry
  • Well regulated and professionally managed
  • They have access to cheaper capital
  • They have lobbies in the government
  • Able to attract quality talent
  • They have large capital base
  • Good brand value and customer acceptance
  • Advantages over scale and scope

Even if you see the stock performance of these companies, the volatility (prices going up and down) tends to be less and usually the volumes (number of buyers and sellers) are very high. Hence investing in such companies seems to be stable and safer. The general belief is that investing in such companies gives you stable and steady growth.

If your over all diet permits investments in equities, we highly recommend you to invest most of your passive money in large cap companies.

Fintotal Knowledge the best place to learn more on personal finance.

The language is simplified and written specially for non finance background individuals.


Explore more in a easy manner.

Table of Contents

Table of Contents

  • No Article Listed
  • No Article Listed
  • No Article Listed
  • No Article Listed
  • No Article Listed
  • No Article Listed
  • No Article Listed
  • No Article Listed
  • No Article Listed
  • No Article Listed

Get the all financial products under one roof only at

you will NEVER GO WRONG with us!

Unbiased . Best Deals . Appropriate Products . No Mis-selling