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.