Investing Basics: Mid-Cap Stocks

  • 📰 Forbes
  • ⏱ Reading Time:
  • 79 sec. here
  • 3 min. at publisher
  • 📊 Quality Score:
  • News: 35%
  • Publisher: 53%

Nigeria News News

Nigeria Nigeria Latest News,Nigeria Nigeria Headlines

Investing basics: Via ForbesAdvisor

Market capitalization, or market cap, is a formula for calculating a company’s value in the stock market. Market cap is equal to the price of a company’s stock multiplied by the number of shares outstanding. A company with 100 shares outstanding each worth $100, for example, would have a market cap of $10,000 .

Information on share value and total number of outstanding shares is available for all publicly traded companies. Most stock research tools also indicate what kind of market capitalization a company has. Even though a company’s size doesn’t tell you everything you need to know about its stock, stocks of similar sizes do tend to share many characteristics. That’s why it can be useful to divvy up the stock market into large-, mid- and small-cap categories. Market cap also comes in handy for a few reasons:Index providers use market cap data to decide which companies will be included in major benchmarks.

Mid-cap companies typically have a market value that ranges from approximately $2 billion to $10 billion. These companies usually have an established business model and foothold in their respective industries and may experience rapid growth as they expand market share. They often are the target of mergers or acquisitions by large-cap companies. However, the mid-cap category also includes former large-cap companies that have fallen in size and dominance.

In terms of their investing attributes, mid-cap stocks typically are less risky, experience less volatility and may have less growth potential than small-caps—but they are more risky, experience more volatility and have higher potential gains than large-cap stocks.tracks the performance of 400 mid-sized U.S. companies with valuations between about $2 billion and $8 billion. As of September 2021, the median market cap of companies in this benchmark was nearly $5.5 billion.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 394. in NG

Nigeria Nigeria Latest News, Nigeria Nigeria Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Investor who almost doubled the return of her index says these three midcap stocks are ripe for the economic recoveryThere's a crowding of money in large-cap stocks, especially growth stocks. Diversifying into smaller companies might cut risks and show ripe opportunities at the right time. You can do this with mid-cap stocks, Philip van Doorn writes:
Source: MarketWatch - 🏆 3. / 97 Read more »

Stocks rise with U.S. big growth shares; 5-yr U.S. yields climbGlobal stock indexes mostly rose on Monday following gains in U.S. mega-cap technology and other growth names, while five-year Treasury yields rose to their highest levels since early 2020.
Source: Reuters - 🏆 2. / 97 Read more »

Cloud-storage company BackBlaze files for IPOBackBlaze says it is 'designed to fulfill major unmet market needs, particularly among mid-market businesses.' this is terrible news Another FSLY
Source: MarketWatch - 🏆 3. / 97 Read more »