Market capitalization is a key metric that represents the total value of a company’s outstanding shares of stock. This value is calculated by multiplying the current stock price by the number of outstanding shares. Companies are categorized based on their market capitalization into the following segments:

Large Cap (Large Capitalization):

• Market Cap Range (in Dollars): Typically, large-cap companies have a market capitalization exceeding $10 billion or $5 billion, depending on the context.
• Characteristics: Large-cap companies are well-established industry leaders with a history of stable earnings. They are considered less risky than smaller companies and often have a global presence. Examples include Apple Inc., Microsoft Corporation, and Amazon.com Inc.

Mid Cap (Mid Capitalization):

• Market Cap Range (in Dollars): Mid-cap companies typically have a market capitalization between $2 billion and $10 billion, though the range may vary.
• Characteristics: Mid-cap companies are often in a phase of growth and expansion. They have established themselves in their respective markets but might not be as mature as large-cap companies. Investors in mid-cap stocks seek a balance between growth potential and risk.

Small Cap (Small Capitalization):

• Market Cap Range (in Dollars): Small-cap companies usually have a market capitalization below $2 billion or $1 billion, though these thresholds can vary.
• Characteristics: Small-cap companies are often younger and may be in the early stages of development. While they offer significant growth potential, they tend to be riskier than larger companies. Small-cap stocks may be more volatile and less liquid.

Please note that these values are approximations and can vary based on the specific financial context, market conditions, and currency exchange rates. For international investors, it’s essential to adapt these thresholds based on the prevailing financial landscape and currency values. Feel free to share this valuable information with your trading partner to enhance your understanding of market dynamics and make informed investment decisions.