Define: Large-cap Stock

UK Accounting Glossary

Definition: Large-cap Stock



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Full Definition of Large-cap Stock


A large-cap stock is the stock of a company having a market capitalization over $10 billion (although the criteria for what makes a large-cap stock tends to vary). Large-cap stock is often called blue-chip stock; it is the stock of the largest companies, such as IBM, Microsoft, and 3M. Large-cap stock tends not to have as much room to grow as small-cap stock and is therefore not as popular among investors seeking growth from a stock. Large-cap stock is more likely than small-cap stock to pay regular dividends, partly owing to its greater net earnings and its stability. Also due to its stability, large-cap stock is popular among risk-averse investors and those seeking to conserve their investment from possible loss.


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Definition Sources


Definitions for Large-cap Stock are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 10th February 2020.