Large-cap stock - Financial definition
Concise definition of the term large-cap stock
The term large-cap stock refers to a company with a market capitalization typically exceeding $10 billion, indicating a high level of market value and stability.
Comprehensive definition of the term large-cap stock
In finance, a large-cap stock represents a well-established company with a significant market capitalization, often exceeding $10 billion. These stocks are considered less volatile and are typically associated with mature, stable companies that have a long history of profitability and strong market presence. Investors often turn to large-cap stocks as core holdings in their portfolios, seeking steady returns, lower risk, and potential dividends.
Examples of large-cap stocks in the US include well-known companies like Apple Inc. (AAPL), Microsoft Corporation (MSFT), and Johnson & Johnson (JNJ). In the market, large-cap stocks are commonly tracked by indices such as the S&P 500, Dow Jones Industrial Average, and Nasdaq-100, providing benchmarks for performance evaluation and investment strategies.