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

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1.
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.
2.
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.
3.
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.
4.
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.
5.
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.