Definition: Large cap refers to companies that have a market capitalization of over $5 bilion or even $10 billion, depending on who is giving you the definition. These are large, relatively stable companies whose stock prices may not grow as fast as a smaller company. That is because it is difficult to grow quickly when you are already the market leader, which most of these companies are. However, their large size makes them less likely to go out of business, so they are a safer investment than small cap companies.
Also Known As: Large Capitalization Stock or Companies
Examples: Some large cap companies are worth more than the GDP of many small countries.
