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Companies worth over $10 billion. More stable but slower growth.
Why It Matters
Large caps are the blue whales of the market - stable, well-known, and unlikely to go bankrupt. Apple, Microsoft, Amazon, and Google are 'mega-caps' (over $200B). These companies dominate their industries and often pay dividends. The downside: they can't double overnight like a small company can. Most S&P 500 returns come from large caps.
Key Points
- The S&P 500 is essentially a large-cap index - it's market-cap weighted so biggest companies dominate
- Large caps often have international operations, so 'US' large caps give you global exposure
- In bear markets, large caps typically fall less than small caps - quality tends to hold up better
Related Terms
Common Questions
Companies worth over $10 billion. More stable but slower growth. Large caps are the blue whales of the market - stable, well-known, and unlikely to go bankrupt. Apple, Microsoft, Amazon, and Google are 'mega-caps' (over $200B).
Large caps are the blue whales of the market - stable, well-known, and unlikely to go bankrupt. Apple, Microsoft, Amazon, and Google are 'mega-caps' (over $200B). These companies dominate their industries and often pay dividends. The downside: they can't double overnight like a small company can. Most S&P 500 returns come from large caps.
The S&P 500 is essentially a large-cap index - it's market-cap weighted so biggest companies dominate
Large caps often have international operations, so 'US' large caps give you global exposure
In bear markets, large caps typically fall less than small caps - quality tends to hold up better