Large-cap stock

Quick definition

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Updated: Jan 9, 2024

Large-cap stocks are stocks with market capitalisations exceeding $10 billion.

Key details

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  • Large-cap stocks are stocks with market capitalisations exceeding $10 billion.
  • Large-cap stocks belong to some of the biggest companies in the world like Tesla, Microsoft, and Apple
  • Large-cap stocks tend to trade in higher volume than mid-and small-cap stocks, and higher liquidity tends to make them less volatile.

What are large-cap stocks?

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Large-cap stocks are stocks with market capitalisations exceeding $10 billion. Because of their size and value, large-cap stocks tend to be very well-known companies. Name your favourite large brand and the odds are that the company’s stock is a large-cap.

What are the defining characteristics of large-cap stocks?

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1) Large market capitalisation

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Large-cap stocks can fall under numerous different stock type categories. The only immutable characteristic it has is the size of its market capitalisation, with $10 billion or more as the established threshold for large-cap stocks. 

2) They have name recognition

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Coca-Cola, McDonald’s, and Microsoft… name a well-known company, and their stock is likely a large-cap stock. Companies with established brands have a leg up on the competition when it comes to building and sustaining revenue and earnings growth – both important traits that often fuel stock price gains.

3) Stability

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Large-cap stocks tend to trade in higher volume than mid-and small-cap stocks, and higher liquidity tends to make them less volatile. Since these companies are also large and well-established, they’re less likely to be affected by a single negative news item.

4) There is lots of information available about them

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Because large-cap stocks tend to have longer and more visible track records, you can easily pick up a lot of information about their financial health. From years of financial reports to the many analysts that cover them, there’s plenty of information out there to help you figure out if they’re worth the investment.

What are some examples of large-cap stocks?

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If you’re looking to sure up your investments with some large-cap stocks, here are some companies it’s worth considering.

1) Nike (NKE)

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The footwear and sports apparel giant’s stock has a $127 billion market cap. Nike’s stock has shown unusual strength despite the broad market’s downturn during the COVID-19 pandemic, and as of early June 2020 sat just pennies short of its all-time trading high.

2) Alphabet (GOOGL)

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Google’s parent company is an absolute giant, whether you measure it by Alphabet’s market share compared to other Internet services, its earnings and revenue growth, or by market cap ($982 billion). Google’s stock had consolidated for three and a half months as of early June, setting up for a potential breakout to new high ground. 

3) Apple (AAPL)

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Technology juggernaut Apple shrugged off the effects of the coronavirus-triggered market correction and surged to a new all-time high in early June 2020. Apple’s stock owns the highest market cap among all US companies’ stocks at $1.44 trillion. 

4) BlackRock (BLK)

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BlackRock is a U.S.-based multinational investment company, with $7.4 trillion in assets under management as of year-end 2019. The stock sports a market cap of $85.9 billion and is in good position to rise higher as the global economy recovers.

How do I find large-cap stocks?

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There are lots of investment websites that offer screening tools which let you search for large-cap stocks based on any fundamental or technical parameters you like. You can also find the best large-cap stocks right here, with our lists of top-performing large-cap stocks published every month on this website.



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Prash Raval
Financial Writer
Prash is a financial writer for Invezz covering FX, the stock market and investing. For over a decade he has traded spot FX full time while... read more.