Mid Cap

Loading the player...

What is 'Mid Cap'

A mid cap company is a company with a market capitalization between $2 and $10 billion, which is calculated by multiplying the number of a company's shares outstanding by its stock price. Mid cap is an abbreviation for the term "middle capitalization".

BREAKING DOWN 'Mid Cap'

As the name implies, a mid cap company is in the middle of the pack between large cap and small cap companies.

Keep in mind that classifications such as large cap, mid cap and small cap are only approximations that change over time. Also, the exact definition of these terms can vary among the various participants in the investment business.

RELATED TERMS
  1. Small Cap

    Refers to stocks with a relatively small market capitalization. ...
  2. Russell 2500 Index

    A broad index featuring 2,500 stocks that cover the small and ...
  3. Market Capitalization

    The total dollar market value of all of a company's outstanding ...
  4. Micro Cap

    A publicly traded company in the United States that has a market ...
  5. Annual Cap

    A clause found in the contract of an adjustable-rate mortgage ...
  6. All-Cap Fund

    A stock mutual fund that invests in equity securities without ...
Related Articles
  1. Stock Analysis

    Small Cap Vs. Mid Cap Vs. Large Cap Stocks in 2016

    Find out what to expect from small-, mid- and large-cap stocks in 2016, learn and why markets might not perform much better than 2015.
  2. Stock Analysis

    Market Cap Valuations For 2010

    How do the P/E ratios for the major market caps stack up against one another, and against themselves, for 2010?
  3. Markets

    An Introduction To Small Cap Stocks

    When it comes to a company's size, bigger isn't always better for investors. Find out more here.
  4. Stock Analysis

    Large Growth Still Stinks; Small Value Still Rules

    What are style and market cap ETFs telling us about this bull market? Where to invest, and where not to, for one thing.
  5. Markets

    Understanding Small- And Big-Cap Stocks

    If you don't realize how big small-cap stocks can be, you'll miss some good investment opportunities.
  6. 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.
  7. Investing

    Market Cap

    Learn more about how market cap represents the "price tag" of a company.
  8. Investing

    What does Large Cap mean?

    The “cap” in large cap refers to a company’s capitalization as determined by the total market value of its publicly traded shares. Large cap is short for “large market capitalization.”
  9. Stock Analysis

    How To Play The Small-Cap Comeback

    If the economy returns to some level of normalcy, small-cap share prices should continue their upwards trend.
  10. Stock Analysis

    Which ETF To Choose: Small Cap Vs. Large Cap

    To get ahead, investors need to focus on rebalancing and diversification, rather than one asset class.
RELATED FAQS
  1. What is the best way to invest in small cap companies?

    Learn about the best ways to invest in small cap companies. Find out when small cap companies yield the highest return and ... Read Answer >>
  2. What are some of the best small cap index funds?

    Learn about the best small-cap index funds, such as the iShares Russell 2000, IWM due to its low costs; liquidity; and diversification. Read Answer >>
  3. Is there such a thing as a nano cap or micro cap index?

    While there are indexes that track micro cap stocks, there are few indexes tracking nano caps. Although definitions vary, ... Read Answer >>
  4. What is the difference between market capitalization and shares outstanding?

    Understand the relationship between shares outstanding and market capitalization and how market cap is interpreted to establish ... Read Answer >>
  5. How risky are small cap stocks?

    Learn about small-cap stocks and how they are considered riskier than large-cap stocks. Mostly, it is due to a smaller balance ... Read Answer >>
  6. What is the difference between market capitalization and enterprise value?

    Understand the basics of market capitalization and enterprise value, how they measure company value and how they differ in ... Read Answer >>
Hot Definitions
  1. MACD Technical Indicator

    Moving Average Convergence Divergence (or MACD) is a trend-following momentum indicator that shows the relationship between ...
  2. Over-The-Counter - OTC

    Over-The-Counter (or OTC) is a security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, ...
  3. Quarter - Q1, Q2, Q3, Q4

    A three-month period on a financial calendar that acts as a basis for the reporting of earnings and the paying of dividends.
  4. Weighted Average Cost Of Capital - WACC

    Weighted average cost of capital (WACC) is a calculation of a firm's cost of capital in which each category of capital is ...
  5. Basis Point (BPS)

    A unit that is equal to 1/100th of 1%, and is used to denote the change in a financial instrument. The basis point is commonly ...
  6. Sharing Economy

    An economic model in which individuals are able to borrow or rent assets owned by someone else.
Trading Center