what is mid cap

What is mid cap? It usually means a company with a market value in the middle range, between small-cap and large-cap companies, often around $2 billion to $10 billion in market capitalization.

Quick Scoop

• Mid-cap stocks are shares of medium-sized companies.
• They sit between large-cap and small-cap stocks.

• Many investors see them as a balance of growth potential and moderate risk.

Why it matters

Mid-cap companies are often past the earliest, riskiest stage of growth, but they still have room to expand. That is why they can feel like a “sweet spot” for some portfolios.

Simple example

A company that is too small to be considered established, but too large to be considered a startup, may be labeled mid-cap if its market value falls in the middle range.

In funds

A mid-cap fund is a mutual fund or ETF that mainly invests in mid-cap companies, giving investors diversified exposure to that segment.

Information gathered from public forums or data available on the internet and portrayed here.