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A term used by the investment community to refer to companies with a market capitalization value of more than $10 billion. Large cap is an abbreviation of the term "large market capitalization". Market capitalization is calculated by multiplying the number of a company's shares outstanding by its stock price per share.
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Large cap companies are the big Kahunas of the financial world. Examples include Wal-Mart, Microsoft and General Electric.
Keep in mind that the dollar amounts used for the classifications "large cap", mid cap", or "small cap" are only approximations that change over time. Among market participants, their exact definitions can vary.
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