Large Cap (Big Cap)

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Definition of 'Large Cap (Big Cap)'

A large-cap stock is a stock of a company with a market capitalization of more than $10 billion. Large-cap companies are typically well-established and have a long history of profitability. They are often considered to be less risky than small-cap and mid-cap stocks, and they tend to pay higher dividends.

Large-cap stocks are often used by investors who are looking for a safe investment with a steady stream of income. They can also be used by investors who are looking to build a diversified portfolio.

There are a number of factors that can affect the price of a large-cap stock. These include the company's financial performance, economic conditions, and investor sentiment.

The price of a large-cap stock can also be affected by mergers and acquisitions. When two companies merge, the resulting company is often considered to be a large-cap stock. Similarly, when a large-cap company acquires a smaller company, the resulting company is often considered to be a large-cap stock.

Large-cap stocks can be traded on the stock market. They are typically listed on the New York Stock Exchange (NYSE) or the Nasdaq Stock Market.

There are a number of ways to invest in large-cap stocks. One way is to buy individual stocks. Another way is to invest in a mutual fund or exchange-traded fund (ETF) that invests in large-cap stocks.

Large-cap stocks can be a good investment for investors who are looking for a safe investment with a steady stream of income. However, it is important to remember that all investments carry some degree of risk. Investors should always do their own research before investing in any security.

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