What Are Mid-Cap Stocks?
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What Are Mid-Cap Stocks?
Mid-cap stocks are stocks issued by medium-sized companies. They generally fall in the middle of the risk spectrum when compared to small-cap (generally riskier) and large-cap (generally less risky) stocks. Many companies that issue mid-cap stocks have been in business for decades and are well known.
Things To Know
- Mid-cap stocks generally fall in the middle of the risk spectrum when compared to small-cap (generally riskier) and large-cap (generally less risky) stocks.
Characteristics of mid-cap stocks
Many mid-cap stocks have historically had a greater potential for steady growth and strong records. They are like blue-chip stocks (which are large-cap stocks) but lack the size of blue chips. While historically more volatile, mid-cap stocks tend to average higher returns than large-cap stocks over the long term.
Mid-cap stocks, like small caps, emphasize growth but typically pay a relatively larger share of their earnings as dividends.
Mid-capitalization companies are subject to higher volatility than large-capitalized companies.
