What are Large, Mid and Small Cap Shares?
Large, mid and small cap shares refer to the size (market capitalisation) of the companies listed on a stock exchange. This is a way of categorising shares by their size.
Large caps refer to companies with the biggest market capitalisation meaning they are the biggest companies in terms of market share that are listed on the stock exchange. Mid-caps refer to companies with the next biggest market capitalisation and of course small caps are all the companies that don’t fit into large and mid-caps.
Large cap companies are typically considered the most stable and the least risky because they are established companies that often pay dividends. Small caps are considered growth stocks meaning they offer the potential for growth over the long term but also carry more risk as they are often newer companies.
Please know, the value of investments can go up as well as down and you may receive back less than your original investment, meaning, when investing your capital is at risk.
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