What Is Large-Cap Stock?
A company with a market capitalization typically above $10 billion.
The Full Definition
Large-cap stocks are companies with a market capitalization generally above $10 billion — think Apple, Microsoft, or Coca-Cola. They tend to be more established, more liquid, and less volatile than smaller companies, with longer track records and broader analyst coverage. Large-caps make up the bulk of major indexes like the S&P 500 and are often the foundation of a long-term portfolio, though they typically grow more slowly than small or mid-cap companies.
Real-World Example
Apple's market cap exceeds $3 trillion — making it not just large-cap but a "mega-cap." A regional bank worth $5 billion would be considered mid-cap, while a biotech startup worth $800 million would be small-cap.