Define: Large Cap

UK Accounting Glossary

Definition: Large Cap


Full Definition of Large Cap

Large-cap is short for large market capitalization, which typically defined as meaning publicly traded companies with a market capitalization of around $10 billion or more. This cutoff for large-cap companies changes over time and is not authoritatively defined. The purpose of the large-cap definition is to separate the very largest public companies from all others. In addition to large-cap stocks, the market capitalization includes mid-cap stocks, small-cap stocks, micro-cap stocks, and occasionally nano-cap stocks. The term large cap can also be used to describe a mutual fund’s investment strategy. A large-cap mutual fund invests only in large-cap stocks. An example would be any index fund that tracks the Dow Jones Industrials. The best known large-cap stocks are sometimes referred to as blue-chip stocks.


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Definition Sources

Definitions for Large Cap 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.