Mid-cap stocks are those that have a market capitalization between $2 billion and $10 billion. They are considered to be more risky than large-cap stocks, but less risky than small-cap stocks.
Mid-cap stocks tend to be more volatile than large-cap stocks, but they also offer the potential for higher returns. They are often considered to be a good compromise between risk and return.
Investors who are looking for growth potential may consider investing in mid-cap stocks. However, they should be aware that these stocks can be more volatile than large-cap stocks.
What is difference between large-cap and mid-cap?
The main difference between large-cap and mid-cap stocks is their size. Large-cap stocks are those that have a market capitalization of $10 billion or more, while mid-cap stocks have a market capitalization of $2 billion to $10 billion.
Large-cap stocks tend to be more stable and less volatile than mid-cap stocks. They also tend to have more established track records and be well-known companies with strong brand names. Mid-cap stocks, on the other hand, may be more volatile and have less of a track record. But they also may offer more growth potential than large-cap stocks.
What is an example of a mid-cap stock? A mid-cap stock is typically defined as a company with a market capitalization between $2 billion and $10 billion. Some examples of mid-cap stocks include:
-Abercrombie & Fitch (ANF)
-Advanced Micro Devices (AMD)
-Aetna (AET)
-American Express (AXP)
-Biogen Idec (BIIB)
-Cisco Systems (CSCO)
-Discovery Communications (DISCA)
-HCA Holdings (HCA)
-International Business Machines (IBM)
-J.P. Morgan Chase (JPM)
-Mastercard (MA)
-Microsoft (MSFT)
-Netflix (NFLX)
-Starbucks (SBUX)
-Tesla Motors (TSLA)
-Time Warner (TWX)
-Visa (V)
-Wells Fargo (WFC)
Which is better small-cap or mid-cap?
It really depends on your investment goals and time horizon. Small-cap stocks tend to be more volatile than mid-cap stocks, so if you're looking for short-term gains, mid-cap stocks may be a better bet. However, small-cap stocks also have the potential to provide higher returns over the long term. So if you're investing for the long haul, small-cap stocks may be a better choice. Why do mid-cap stocks outperform? Mid-cap stocks are stocks with market capitalizations between $2 billion and $10 billion. They are considered to be a good investment because they are less risky than small-cap stocks and more volatile than large-cap stocks.
There are several reasons why mid-cap stocks have been shown to outperform other stocks. One reason is that mid-cap companies are more nimble and adaptable than large-cap companies. They can more easily respond to changes in the market and take advantage of new opportunities.
Another reason is that mid-cap stocks are less researched than large-cap stocks. This means that there is more potential for price discovery when a mid-cap stock is bought or sold.
Lastly, mid-cap stocks tend to be undervalued by the market. This is because they are not as well-known as large-cap stocks and investors may be less familiar with them. As a result, there is more potential for upside when investing in mid-cap stocks.
Is higher market cap better?
No, a higher market cap is not necessarily better. A company's market capitalization is simply the market value of all its outstanding shares. It is calculated by multiplying the current share price by the number of shares outstanding. A company with a higher market cap may be more expensive to buy into, and may be more widely followed by analysts and investors. However, this does not mean that it is a better investment.