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.
If the Zap! Internet stock is selling for $50 per share, and 4 million shares of it are owned by public investors, what is its capitalization?
Choose wisely. There is only one correct answer.
$200 million. To calculate capitalization, multiply the price per share by the number of shares owned by the public.
2.
Mid-cap stocks _______.
Choose wisely. There is only one correct answer.
Represent medium-sized companies. They are not necessarily the safest, and they usually do not pay the highest dividends of any stock.
3.
Large-cap stocks are more likely than small-cap or mid-cap stocks to pay dividends.
Choose wisely. There is only one correct answer.
True. This is partly because they have enough funds to finance future growth. Some of them, however, may have less room to grow.
4.
________ is a characteristic of small-cap stocks.
Choose wisely. There is only one correct answer.
Price volatility. Because small-cap companies may behave unpredictably, their stocks may, too.
5.
Why do growth and aggressive-growth mutual funds include small-cap stocks in their portfolios?
Choose wisely. There is only one correct answer.
Small-cap stocks are growth-oriented. As a result, they are very popular in growth-oriented mutual funds.