What type of stocks are issued by firms that have a market capitalization of more than $10 billion?

Prepare for the FBLA Securities and Investments Exam with questions, flashcards, and hints to enhance your knowledge and boost your confidence. Excel on your exam!

Large Cap stocks refer to the shares of companies that have a market capitalization exceeding $10 billion. These companies are typically well-established, financially stable, and often have a significant influence within their respective industries. Investors see Large Cap stocks as relatively safe investments, as they tend to be less volatile compared to smaller companies.

This classification is important in the context of investment strategies, as Large Cap stocks can provide investor confidence during market fluctuations due to their established performance histories. They are also likely to pay dividends, adding an income component to the investment.

On the other hand, Small Cap stocks are associated with companies that have a market capitalization of less than $2 billion, while Mid Cap stocks range from $2 billion to $10 billion. Micro Cap stocks represent even smaller companies, typically with market capitalizations below $300 million. Each category reflects differing risk levels, growth potential, and investment characteristics, but the defining feature of Large Cap stocks is their significant market capitalization of over $10 billion.

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