Large-Cap Stock
Established giants of the stock market
Definition
Large-cap stocks are shares of companies with a market capitalization typically exceeding $10 billion. They represent the most established, financially stable companies in the market. Large-caps tend to be less volatile than small- or mid-cap stocks, often pay dividends, and form the backbone of major indices like the S&P 500. They are favored by conservative investors and institutional funds.
Example
Apple (AAPL), Microsoft (MSFT), and Amazon (AMZN) are classic large-cap stocks with market caps in the hundreds of billions to trillions. These companies dominate their industries, have global revenue streams, and are less likely to go bankrupt than smaller companies.
Related Terms
Frequently Asked Question
What is a large-cap stock?
A large-cap stock belongs to a company with a market cap over $10 billion. These are established, financially stable companies that are typically less volatile and often pay dividends.
APA Citation
Last updated:
· Source: VixShield Trading Glossary — From SPX Mastery by Russell Clark
⚠️ Not financial advice. This definition is educational content from the SPX Mastery book series by Russell Clark (VixShield). Past performance is not indicative of future results. Trading options involves substantial risk of loss and is not appropriate for all investors. Always paper trade before risking real capital.