MID-CAP stocks are companies typically between $2 billion and $10 billion. Their size falls in the middle between stocks with small and large (blue chips) market capitalization. This list of Mid-Cap US stocks may not be complete
What are the characteristics of mid-cap stocks?
Mid-cap stocks are generally defined as stocks of companies with a market capitalization between $2 billion and $10 billion. This is often considered the "sweet spot" for stocks because they are large enough to have great potential, but not so large that they are overanalyzed and overpriced.
Mid-cap stocks are generally considered safer than smaller, more speculative small-cap stocks, but riskier than larger, more established blue chip companies. They tend to offer higher returns than blue chips and lower volatility than small caps.
How is the market capitalization of a company calculated?
A company's market capitalization is calculated by multiplying the number of shares outstanding by the current price.
Advantages of investing in mid-cap stocks?
The advantages of investing in mid-cap stocks are that they have higher growth potential than other classes of stocks and are more liquid than small-cap stocks.
Disadvantages of investing in mid-cap stocks?
Investing in mid-cap stocks is a great way to diversify your portfolio and earn higher returns. The disadvantages of investing in this type of share are that it is less liquid than large-cap stocks and there is a higher risk of company bankruptcy.