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

Test your knowledge

Choose wisely. There is only one correct answer to each question.

0%
Keep studying!
Review your answers below to learn more.
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?
Choose wisely. There is only one correct answer.
$200 million. To calculate capitalization, multiply the price per share by the number of shares owned by the public.
2.
Large-cap stocks are stocks with _______.
Choose wisely. There is only one correct answer.
Large market values. "Cap" means capitalization. Large-cap stocks are stocks with large market values.
3.
What is capitalization?
Choose wisely. There is only one correct answer.
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.
Small-cap companies do not pay dividends because they usually dont earn profits.
Choose wisely. There is only one correct answer.
False. Small-cap companies may forgo paying dividends to reinvest those dividends for future company growth.
5.
Mid-cap stocks _______.
Choose wisely. There is only one correct answer.
Represent medium-sized companies. They are not necessarily the safest, and they usually do not pay the highest dividends of any stock.