A fuller guide to this term is on the way. In the meantime, the related terms below explain the ideas around it.
Related MoneyPedia terms
- Market CapitalizationThe total value of a company's shares, found by multiplying the share price by the number of shares outstanding.
- Large-CapA company with a large total market value, typically established and less volatile than smaller firms.
- Small-CapA company with a smaller market value that may offer more growth potential along with more risk and volatility.
- DiversificationSpreading your money across many different investments so a drop in any single one does less damage.
- Growth StockShares of a company expected to grow faster than average, usually reinvesting profits instead of paying dividends.
- StockA share of ownership in a company that you can buy and sell, giving you a small stake in its profits and growth.
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Plain-English education — not personalized legal, tax, or investment advice.