What defines a large-cap company?

A large-cap company is generally characterized by a market capitalization of $10 billion or more. This metric can vary slightly based on different financial benchmarks.

Why are large-cap stocks often favored by investors?

Investors often prefer large-cap stocks due to their perceived stability, established market presence, consistent earnings, and greater liquidity compared to smaller companies.

Are large-cap stocks considered risk-free investments?

While generally more stable and less volatile, large-cap stocks are not entirely risk-free. They can still be impacted by economic downturns, industry shifts, or company-specific challenges.

How do large-cap stocks compare to mid-cap and small-cap stocks?

The main distinction is market capitalization. Mid-cap companies typically have market caps between $2 billion and $10 billion, and small-cap companies are usually below $2 billion. Large-caps are generally more mature and established.

Can large-cap stocks still offer significant growth opportunities?

Yes, large-cap companies can still provide growth, often through market expansion, innovation, strategic acquisitions, or international reach, though usually at a steadier pace than high-growth small-caps.