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

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1.
Small-cap companies do not pay dividends because they usually dont earn profits.
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False. Small-cap companies may forgo paying dividends to reinvest those dividends for future company growth.
2.
If the Zing! Internet stock has a capitalization of $100 million dollars, it is probably a _______ stock.
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Small-cap. By most models, this capitalization is quite small.
3.
What is capitalization?
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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.
4.
Large-cap stocks are stocks with _______.
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Large market values. "Cap" means capitalization. Large-cap stocks are stocks with large market values.
5.
Mid-cap stocks _______.
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Represent medium-sized companies. They are not necessarily the safest, and they usually do not pay the highest dividends of any stock.