large cap

Definition

Over $5 billion capitalization. Companies are usually classified as either large cap, medium cap, small cap, or micro cap, depending on their market capitalization, but the dividing lines are somewhat arbitrary. As a general guideline, the market capitaliation is $5 billion or more for large caps, $1 billion to $5 billion for medium caps, $250 million to $1 billion for small caps, and less than $250 million for micro caps. When calculating the market caps of foreign companies who have issued ADRs in the US, only the outstanding ADR shares are considered, not the shares issued by that company in other countries.

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micro cap style investing