Share market - ல பணம் போடுவதற்கு முன்னாடி இதை தெரிஞ்சுக்கோங்க | Mutual Fund | Equity | Demat Account

1. Large Cap
Definition:

Companies with a market capitalization of $10 billion or more are generally considered large cap.
Characteristics:

Stability: These companies are usually well-established and financially stable. They have a history of reliable revenue and profit generation.
Liquidity: Their stocks are typically more liquid, meaning they are traded more frequently and in larger volumes.
Dividends: Many large-cap companies pay dividends to their shareholders, providing a steady income stream in addition to potential capital gains.
Lower Risk: Investments in large-cap companies are considered to be less risky compared to mid-cap or small-cap investments due to their established market presence.
Examples:

Apple Inc. (AAPL)
Microsoft Corporation (MSFT)
Johnson & Johnson (JNJ)
2. Mid Cap
Definition:

Companies with a market capitalization between $2 billion and $10 billion are generally considered mid cap.
Characteristics:

Growth Potential: Mid-cap companies often have significant growth potential as they are in a stage of expanding their market presence.
Moderate Risk: They are riskier than large-cap companies but less risky than small-cap companies. They offer a balance between risk and return.
Investment Opportunity: These companies can provide good opportunities for investors looking for growth without taking on the higher risks associated with small-cap companies.
Examples:

Ulta Beauty Inc. (ULTA)
Marvell Technology Group Ltd. (MRVL)
Steel Dynamics Inc. (STLD)
3. Small Cap
Definition:

Companies with a market capitalization between $300 million and $2 billion are generally considered small cap.
Characteristics:

High Growth Potential: Small-cap companies often have high growth potential but are also more volatile. They can offer significant returns but also come with higher risk.
Less Stability: These companies are usually less established and can be more susceptible to economic downturns and market fluctuations.
Lower Liquidity: Their stocks tend to be less liquid, meaning they may not be as frequently traded as large-cap or mid-cap stocks. This can result in larger price swings.
Investment Appeal: Small-cap stocks are attractive to investors looking for opportunities to capitalize on the growth potential of emerging companies.
Examples:

Bloom Energy Corp. (BE)
Tivity Health Inc. (TVTY)
Prothena Corporation plc (PRTA)
Summary
Large Cap: Established, stable companies with lower risk and steady returns.
Mid Cap: Companies with potential for growth, offering a balance between risk and return.
Small Cap: Emerging companies with high growth potential and higher risk.
Investors often diversify their portfolios by including a mix of large-cap, mid-cap, and small-cap stocks to balance the risk and return potential.

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