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

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1.
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.
2.
The XYZ Hi-Technology company is four years old and already has a market value of one billion dollars. Its stock is therefore large-cap.
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False. Large-cap stocks are the stocks of large, established companies. This hypothetical company does not fit that definition.
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.
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.
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.