what is mid cap

Mid-cap is a term used to describe companies with a market capitalization between $2 billion and $10 billion. The term "market capitalization" refers to the total value of a companys outstanding shares of stock. Mid-cap companies are considered to be in the middle between large-cap and small-cap companies. Large-cap companies have a market capitalization between $10 billion and $200 billion, while small-cap companies have a market capitalization between $250 million and $2 billion. Mid-cap stocks are less risky than small-cap stocks, but more risky than large-cap stocks. They offer a balance of growth and stability, and can provide attractive returns with relatively low risk and volatility. Mid-cap companies are well-established, often focused on one specific business, and have been around long enough to make a niche in their target market. Successful mid-cap companies run the risk of seeing their market capitalization rise to the point where they fall out of the mid-cap category. Mid-cap stocks are a good option for investors who want to diversify their portfolio and balance risk and reward.