Based on the size of a company’s market cap, a stock can be placed into 5 general groups (these ranges can change).
*Mega-Cap Stocks: giant compaines with market caps over $100 billion. General Electric and Microsoft are examples. Mega-caps, along with some large-caps, are also known as blue-chip stocks.
*Large-cap stocks: Companies with market caps of $10-$100 billion. Large-caps are also generally household names like Apple. Large-cap stocks tend to be less risky, but usually offer less chance of huge growth and success (since they’re already so big)
*Mid-cap Stocks: Companies with market caps of $2-$10 billion. IE-Hilton Hotels.
*Small-cap Stocks: Companies with market caps of $100 million-$2 billion. Chances are likely you wont know these companies. Some of you will though =) Smaller-cap stocks tend to be more risky, but often have higher prospects for growth, allowing for higher returns.
*Micro-cap Stocks: Companies with market caps under $100 million. These stocks are typically traded on markets other than the NASDAQ, NYSE, or AMEX.
