Large-cap stocks refer to shares of publicly traded companies with large market capitalizations, typically exceeding a certain threshold, such as $10 billion or more.
Large-cap companies are established, well-known corporations with extensive operations, diversified revenue streams, and market dominance in their respective industries. Large-cap stocks are characterized by their stable earnings, strong brand recognition, established market presence, and ability to withstand economic downturns or market volatility.
Investors perceive large-cap stocks as less risky than small-cap or mid-cap stocks due to their size, liquidity, and diversified business models, making them suitable for conservative or income-oriented investment strategies. Large-cap stocks often pay dividends, provide capital appreciation potential, and offer investors exposure to mature industries and blue-chip companies with sustainable competitive advantages.
Large-cap stocks are widely followed by analysts, institutional investors, and index funds, influencing broader market trends, benchmark indices, and investor sentiment.