#236 Market Capitalization

Market Cap

Market Cap is computed by multiplying the number of outstanding shares times the stock price. There are three main market caps – Large, Mid & Small. Large Cap has market capitalization of over 10 billion. These consist of blue chip companies and multi-national firms that pay great dividends because they are established companies. Mid Cap are firms that are growing at a rapid pace and have a market capitalization between 2 and 10 billion. Small Cap are smaller firms that are just getting established and have a market capitalization between 300 million and 2 billion. So the question is which one is the most risky? Well, they are all risky in their own way. For example, Large Caps are more established so it’s important to keep that in mind.


Bobby Norman, CFP®, AIF®
Senior Vice President
Wealth Consultant
Email Bobby Norman here


Fi Plan Partners is an independent investment firm in Birmingham, AL, serving clients across the nation through financial planning, wealth management and business consulting. Fi Plan Partners creates strategies in the best interest of their clients using both fee based investing and transactional investing.

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly.

Economic forecasts set forth in this presentation may not develop as predicted.

No strategy can ensure success or protect against a loss.
Stock investing involves risk including potential loss of principal.

Dividend paying stock payments are not guaranteed. The amount of a dividend payment, if any, can vary over time and issuers may reduce dividends paid on securities in the event of a recession or adverse event affecting a specific industry or issuer.

Schedule an appointment today!

Meet with us and begin planning your Better, Richer, Fuller® life.

Make an appointment

Subscribe to Our Insights

Every Monday & Thursday, our video blog gives you everything you need to know about the trends moving today’s markets with concise analysis.