LARGE CAP - BIG CAP

Refers to companies who have at least $10 billion market capitalization value. This is an abbreviation of "large market capitalization". To compute market capitalization, multiply the current stock price by its outstanding shares.

Wal-Mart, General Electric, and Microsoft are some examples of large cap companies. The market cap is not the same with their equity value and the company’s debt plus its shareholders’ equity. Most investors, conservative and income investors, are attracted to look at the stocks of big cap corporations because these are more stable and mature.