Home > Stocks > Beginner
Stocks Beginner: Small, Mid, and Large-Cap Stocks

Test your knowledge

Choose wisely. There is only one correct answer to each question.

0%
Keep studying!
Review your answers below to learn more.
1.
Large-cap stocks are stocks with _______.
Choose wisely. There is only one correct answer.
Large market values. "Cap" means capitalization. Large-cap stocks are stocks with large market values.
2.
What is capitalization?
Choose wisely. There is only one correct answer.
The market value of a company. You can calculate it by multiplying the market price per share by the number of shares owned by the public.
3.
The XYZ Hi-Technology company is four years old and already has a market value of one billion dollars. Its stock is therefore large-cap.
Choose wisely. There is only one correct answer.
False. Large-cap stocks are the stocks of large, established companies. This hypothetical company does not fit that definition.
4.
Small-cap companies do not pay dividends because they usually dont earn profits.
Choose wisely. There is only one correct answer.
False. Small-cap companies may forgo paying dividends to reinvest those dividends for future company growth.
5.
Baby blue chips are mid-cap stocks with good growth records.
Choose wisely. There is only one correct answer.
True. As such, they have a good chance of becoming blue chip stocks.