Definition of Large Cap Stocks



Large cap stocks are the shares of corporations that have a market capitalization of more than $10 billion. In real life, the APPLE INC. is an example of large capitalization stock. The large cap companies are at the maturity stage of their life cycle and are enough sustainable to absorb the impacts of adverse economic movements.

 


Another feature of large cap companies is that they are public and hence ensure increased transparency. Because of large size, large-cap companies are market leaders and financially stable, they offer regular dividends to their investors that are higher than other companies. 


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