What is a Mid-Cap Stock?

Mid-cap refers to the market capitalization of stocks of companies with market values between $2 and $10 Billion. Companies and their stocks are generally classified, based on valuation size, as large cap, mid-cap, or small cap.

Are Mid-Cap Stocks a Good Investment?

Mid-caps are appealing because they split the difference between the risks and rewards of small cap and large cap stocks.

They can be a better investment than small cap stocks because they’re historically more financially stable and established. Mid-cap stocks may also be a better investment than large cap because they have more room to grow and are typically quicker to act. When looking to invest in mid-cap stocks, consider the quality of revenue growth.

What is The Difference Between Mid-Cap, Small Cap, and Large Cap?

Small cap companies are smaller in size and are generally valued between $300 Million and $2 Billion. Since they are less established than larger companies, they have more room to grow and potential to produce higher returns, but this can also mean more severe effects of volatility in the market.

Mid-cap companies are medium-sized companies valued at $2 to $10 Billion. These companies are more established and may experience less volatility than small cap companies, but also have more room for growth than large cap companies.

A company is classified as large cap when valued at over $10 Billion. Large cap stocks are considered core portfolio investments because they’re the least likely to be volatile with market fluctuations. In turn, there is potentially less opportunity for aggressive growth, but more opportunity for reliability in consistent returns.


Wealthspire Advisors is a registered investment adviser and subsidiary company of NFP Corp.
This information should not be construed as a recommendation, offer to sell, or solicitation of an offer to buy a particular security or investment strategy. The commentary provided is for informational purposes only and should not be relied upon for accounting, legal, or tax advice. While the information is deemed reliable, Wealthspire Advisors cannot guarantee its accuracy, completeness, or suitability for any purpose, and makes no warranties with regard to the results to be obtained from its use. ©2021 Wealthspire Advisors

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