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

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1.
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.
2.
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.
3.
Why do growth and aggressive-growth mutual funds include small-cap stocks in their portfolios?
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Small-cap stocks are growth-oriented. As a result, they are very popular in growth-oriented mutual funds.
4.
Baby blue chips are mid-cap stocks with good growth records.
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True. As such, they have a good chance of becoming blue chip stocks.
5.
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.