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

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1.
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.
2.
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.
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.
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.
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.