Definition

Large-cap companies are big, well-established businesses that are worth $10 billion or more based on their total stock value. These companies are leaders in their industries, financially strong, and tend to grow steadily over time. They’re a popular choice for investors looking for stability and reliable returns.

Analogy

Think of large-cap companies like luxury cruise ships. They are massive, stable, and built to withstand storms, offering a smoother ride in turbulent markets. While they may not accelerate as fast as smaller speedboats (small-cap stocks), they provide consistent and reliable progress over time.

Little-Known Fact

Did you know that over 80% of the S&P 500 index is made up of large-cap stocks? That means when people say "the stock market is up," they’re often referring to the movement of large-cap companies like Apple, Microsoft, and Johnson & Johnson!

Action Steps

Look up the 5 largest companies in your country by total stock value.

You might be surprised—some household names may not be as big as you think!