Some stocks share something with Captain America 🦸
A large cap!
Well, a large market capitalization at least 🤷
As a reminder, market capitalization is the total value of a company on a stock market 🙉
It’s calculated by multiplying outstanding stocks and the price of 1 stock.
Large cap stocks are companies that have a market capitalization of $10 billion or more 💰
That’s a lot of money!
These stocks are often considered safer investments due to their size and established market position 💪
They are typically well-known, blue-chip companies with a long track record of stability and success 🏦
Some examples of large-cap stocks include Apple, Microsoft, and Amazon. 🍎💻📦
Investing in large cap stocks can provide a steady stream of income since many, but not all, offer dividends 💸
A dividend is a quarterly payout proportional to how much stock you own 🤑
Apple offers dividends for example!
Due to their size and popularity, large cap stocks are often more heavily traded and may have greater liquidity, making them easier to buy and sell 💹
However, the potential for growth may be limited as these companies are already established and may not experience significant price appreciation 📉
Another downside of investing in large cap stocks is that they may be more sensitive to economic downturns or market shifts, as their size and market position can make it harder to pivot quickly 📉
Overall, large caps are often very popular since they tend to be from large, established and therefore well known companies ✨
Always do your research since sometimes new startups can disrupt old markets!