What is LARGE CAPITALIZATION STOCK?

Denotes stock with $5 billion or more in market capitalization. A US term. Typically a large publicly held bluechip firm. Such firms are seen as major drivers of the US economy, and sometimes beyond. Dow Jones Industrial Average (DJIA) and the Standard and Poor’s 500 (S&P 500) are market indices that track stocks of these firms. Share value of these shares grow slower than smaller firm shares. However, these share remain stable over longer periods than those of smaller firms. Also known as large caps.

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