Stocks Categories



Stocks are classified according to a number of criteria, including company size and company sector.

Large Cap, Mid Cap and Small Cap

Stocks can be classified according to the market capitalization of the company.

The market capitalization of a company represents the total dollar value of the company's outstanding shares. This is equal to the current market price of its stock multiplied by the number of shares of stock that it has outstanding. That number gives you the market value of the company, which is one measure of the company's size. Roughly speaking, there are three basic categories of market capitalization: large cap, mid cap, and small cap (although some analysts include others such as mega cap at the large end and micro cap at the small end). The definitions for each of these might vary somewhat depending on whom you're talking to, but usually they are as follows:

•Large cap: market cap valued at more than $10 billion

•Mid cap: market cap valued between $1 billion and $10 billion

•Small cap: market cap valued at less than $1 billion

In general, the larger the cap size, the more established the company, and the more stable the price of its stock. Small cap and mid cap companies usually have a higher potential for future growth than large cap companies, but their stock tends to fluctuate more in price.

It's very important to know in which category or sector your stocks belong to. Owning several stocks in one category is one sure way to set your portfolio on fire. When there is bad news in a given sector, all the stocks in that sector get affected. Having said that, always do your due dilligence to know your stocks.

Below is a list of the different industries...

  • Oil & Gas
  • Basic Materials
  • Industrials
  • Consumer Goods
  • Health Care
  • Consumer Services
  • Telecommunications
  • Utilities
  • Financials
  • Technology


The best place for you to learn about stock categories is to go to and click on industries.



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