Trading Ideas
Small Cap vs. Large Cap: What’s The Difference?
Beginner investors will quickly find themselves with questions about market capitalization. What’s small cap vs. large cap? Why does market cap matter? Is one better than the other? There are a multitude of questions worth asking and answering about market cap. The first and most important is what the distinction between small and large caps is.
Understanding the difference between small and large cap companies plays a big role in shaping many investors’ strategies. It can determine risk tolerance and time horizon. It can also determine what kinds of companies a person invests in or what sector they gravitate toward. …read more […]