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!

Get a certificate for this quiz
Enter your name to generate a certificate that you can save or print immediately. Optionally, add your email address to have a copy of the certificate emailed to you.


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.
Baby blue chips are mid-cap stocks with good growth records.
Choose wisely. There is only one correct answer.
True. As such, they have a good chance of becoming blue chip stocks.
3.
Why do growth and aggressive-growth mutual funds include small-cap stocks in their portfolios?
Choose wisely. There is only one correct answer.
Small-cap stocks are growth-oriented. As a result, they are very popular in growth-oriented mutual funds.
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.
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.
Choose wisely. There is only one correct answer.
False. Large-cap stocks are the stocks of large, established companies. This hypothetical company does not fit that definition.