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

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1.
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.
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.
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.
4.
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.
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.