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
- Small-CapA company with a smaller market value that may offer more growth potential along with more risk and volatility.
- Stock Market IndexA measure that tracks a group of stocks to show how a part of the market is performing overall.
- S&P 500An index tracking about 500 of the largest U.S. companies, widely used as a snapshot of the overall market.
- BenchmarkA standard index used to compare how well your investments or a fund are performing.
- Mid-CapA company with a medium market value, often balancing the growth potential and stability of larger and smaller firms.
- DiversificationSpreading your money across many different investments so a drop in any single one does less damage.
More in Investing
Plain-English education — not personalized legal, tax, or investment advice.