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

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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?
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$200 million. To calculate capitalization, multiply the price per share by the number of shares owned by the public.
2.
Large-cap stocks are more likely than small-cap or mid-cap stocks to pay dividends.
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True. This is partly because they have enough funds to finance future growth. Some of them, however, may have less room to grow.
3.
________ is a characteristic of small-cap stocks.
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Price volatility. Because small-cap companies may behave unpredictably, their stocks may, too.
4.
A medium-sized stock with a good growth record and the potential of becoming a large-cap stock is called a _______.
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Baby blue chip. In other words, the issuer is likely to become a blue chip company.
5.
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.