Mid-cap stocks refer to shares of publicly traded companies with medium-sized market capitalizations, typically ranging between small-cap and large-cap stocks. Mid-cap companies are characterized by their moderate size, growth potential, and market capitalization, falling between smaller, high-growth small-cap companies and larger, established large-cap corporations. Mid-cap stocks often exhibit a balance of growth and stability, offering investors opportunities for capital appreciation, earnings growth, and diversification benefits. Mid-cap companies may operate in various sectors and industries, providing products or services with moderate market share, competitive positioning, and expansion opportunities. Investors perceive mid-cap stocks as offering higher growth potential than large-cap stocks due to their smaller size, greater agility, and potential for market outperformance, while also providing lower volatility and risk compared to small-cap stocks. Mid-cap stocks are actively traded on stock exchanges and widely followed by institutional investors, portfolio managers, and retail investors seeking exposure to dynamic, mid-sized companies with growth prospects and investment appeal.

A deficit occurs when expenses exceed revenues or when liabilities exceed assets, resulting in a negative balance or shortfall. Deficits can occur in various contexts, including government budgets, trade balances, and corporate finances. Government deficits arise when government spending exceeds tax revenues, leading to borrowing or deficit financing to cover the shortfall. Trade deficits occur when a country imports more goods and services than it exports, resulting in a negative trade balance. Corporate deficits may result from operating losses, excessive spending, or financial mismanagement. Deficits can have implications for economic stability, fiscal policy, and financial health, depending on their magnitude, duration, and underlying causes. Addressing deficits often involves implementing measures to increase revenues, reduce expenses, stimulate economic growth, or improve efficiency to achieve fiscal sustainability and long-term viability.

Term to maturity refers to the remaining time until a financial instrument, such as a bond, loan, or option, reaches its maturity date and the principal amount becomes due for repayment to the investor or lender. Term to maturity is a critical factor in assessing the risk, return, and pricing of fixed-income securities, influencing investor preferences, market demand, and interest rate sensitivity. Bonds with longer terms to maturity generally offer higher yields or interest rates to compensate investors for the increased risk and uncertainty associated with longer holding periods, inflation expectations, and changes in market conditions. Conversely, bonds with shorter terms to maturity tend to have lower yields but lower interest rate risk and greater liquidity, making them suitable for short-term investment strategies or income needs. Term to maturity classifications include short-term (up to 1 year), intermediate-term (1 to 10 years), and long-term (over 10 years), reflecting different investment horizons, risk profiles, and yield expectations. Investors consider term to maturity when building diversified bond portfolios, managing interest rate risk, and aligning investment strategies with their financial goals, time horizons, and risk preferences, ensuring a balanced and suitable allocation of fixed-income assets based on market conditions, economic outlook, and interest rate expectations.