Understanding Small-Cap and Large-Cap Stocks
1. Small-Cap Stocks: Small-cap stocks typically belong to companies with a smaller market capitalization, often ranging from a few hundred million dollars to a few billion dollars. These companies are considered to have high growth potential but may also carry higher risks due to their size and volatility.
2. Large-Cap Stocks: Large-cap stocks, on the other hand, are issued by well-established companies with significant market capitalization, often exceeding billions of dollars. These companies are generally more stable, pay dividends, and may have slower but consistent growth compared to small-caps.