Mega Cap

AAA

DEFINITION of 'Mega Cap'

The biggest companies in the investment universe, as measured by market capitalization. While there is no exact definition of the term, mega cap generally refers to companies with a market cap exceeding $100 billion. Mega caps are usually household names with strong brand recognition and global operations, such as Exxon Mobil, Apple, Microsoft, Nestle and IBM.

INVESTOPEDIA EXPLAINS 'Mega Cap'

The ranks of the mega caps were traditionally dominated by companies from the U.S., Europe and Japan. However, the steady rise of the biggest emerging nations in the new Millennium, has resulted in increasing representation from companies in nations such as China. As of 2011, three Chinese companies ranked among the world's 10 biggest mega caps: PetroChina, the Industrial Commercial Bank of China and China Construction.


On a sectoral basis, the commodity boom in the first decade of the new Millennium resulted in many energy and resource companies achieving mega-cap status. On the flip side, the dramatic decline in U.S. and European banks in the aftermath of the 2008 global credit crisis, resulted in some of the biggest banks losing mega-cap status.

RELATED TERMS
  1. Large Cap - Big Cap

    A term used by the investment community to refer to companies ...
  2. Micro Cap

    A publicly traded company in the United States that has a market ...
  3. Blue-Chip Stock

    Stock of a large, well-established and financially sound company ...
  4. Mid Cap

    A company with a market capitalization between $2 and $10 billion, ...
  5. Market Capitalization

    The total dollar market value of all of a company's outstanding ...
  6. Nano Cap

    Small public companies with a market capitalization below $5 ...
Related Articles
  1. Mutual Funds & ETFs

    Which Mutual Fund Market Cap Suits You?

    Different funds invest in companies with different market caps. Find out which is right for you.
  2. Options & Futures

    Finding Undiscovered Stocks

    Wall Street tends to focus on large cap stocks, leaving other stocks under-followed and undervalued.
  3. Insurance

    Market Capitalization Defined

    Find out the differences between mega-, large-, mid- and small-cap stocks and how each suits different investing styles.
  4. Trading Strategies

    Small Caps Boast Big Advantages

    Find out why little companies have the greatest potential for growth.
  5. Active Trading

    The Importance Of Segment Data

    Key financials often fail to provide insight into large cap companies.
  6. Chart Advisor

    Time To Rebalance? These ETFs Say So

    Caution ahead: 2014 has been very good to U.S. large-cap indexes, but lagging commodities and funds holding mid- to small-caps point to a slowdown.
  7. Mutual Funds & ETFs

    Will Stock Market VOOdo Continue?

    The Vanguard S&P 500 ETF (VOO) offers a relatively safe investment opportunity for people who aren't sure which way the market is headed.
  8. Investing

    Market Cap

    Learn more about how market cap represents the "price tag" of a company.
  9. Trading Strategies

    3 Ways Price Momentum Can Burn Your Portfolio

    Momentum traders are always trying to ride the herd. In these three situations, however, they may end up getting trampled.
  10. Investing Basics

    The Changing Role Of Equity Research

    Research creates a division of labor that makes the market more efficient. Learn how its role has changed.

You May Also Like

Hot Definitions
  1. Weight Of Ice, Snow Or Sleet Insurance

    Financial protection against damage caused to property by winter weather specifically, damage caused if a roof caves in because ...
  2. Weather Insurance

    A type of protection against a financial loss that may be incurred because of rain, snow, storms, wind, fog, undesirable ...
  3. Portfolio Turnover

    A measure of how frequently assets within a fund are bought and sold by the managers. Portfolio turnover is calculated by ...
  4. Commercial Paper

    An unsecured, short-term debt instrument issued by a corporation, typically for the financing of accounts receivable, inventories ...
  5. Federal Funds Rate

    The interest rate at which a depository institution lends funds maintained at the Federal Reserve to another depository institution ...
  6. Fixed Asset

    A long-term tangible piece of property that a firm owns and uses in the production of its income and is not expected to be ...
Trading Center