large caplarge cap
- Of or relating to large corporations that have considerable retained earnings and a large amount of common stock outstanding.
- Of or relating to mutual funds that invest in the stock of such corporations.
Origin of large caplarge + cap2.
(plural large caps)
- A company having a large market capitalization.
large cap - Investment & Finance Definition
Short for large capitalization, this designates the largest company type. A large-cap company typically has a market capitalization of over $5 billion, although exact guidelines for what constitutes a large-cap company vary greatly among different classification systems. Market cap is derived by multiplying the price of a company’s stock by the number of outstanding shares. For example, a company with a stock price of $30 and 10 million shares outstanding has a market capitalization of $300 million. Often mutual funds are classified by the type of companies that they invest in, such as large-cap companies.