Different Types of Stocks
Different Types of Stocks
Companies are categorized by market capitalization (total market value of shares). Different types of stocks based on the company size are as follows:
Small-Cap Stocks
Small-cap stocks belong to companies with a relatively small market capitalization. These stocks have high growth potential but also come with higher volatility and risk.
Mid-Cap Stocks
Mid-cap stocks represent companies with a medium-sized market capitalization. They offer a balance between growth and risk, making them attractive to investors looking for moderate returns.
Large-Cap Stocks
Large-cap stocks belong to well-established, financially stable companies with a large market capitalization. These stocks offer steady returns, lower risk, and often provide dividends.
