Middle Market Firm

AAA

DEFINITION of 'Middle Market Firm'

A firm with sizeable annual revenues, ranging from $50 million to $1 billion. As the term implies, such a firm is one that straddles the "middle market" between the smaller companies and the billion-dollar giants. In the case of professions such as legal, accounting and brokerage, middle market firms are those that are just below the dominant firms (such as the Big Four in accounting) in their respective field.

INVESTOPEDIA EXPLAINS 'Middle Market Firm'

The limits that define a middle market firm are not set, with some definitions setting the lower limit for annual revenues as low as $10 million, while others set the upper limit at $500 million.


Middle market firms are one of the pillars of the U.S. economy, since they account for a significant share of job creation. They are generally among the fastest-growing firms in terms of revenues. Publicly traded middle market firms may often be classified as mid-capitalization stocks, a segment that investors find particularly attractive because of their high-growth prospects coupled with a lower degree of risk than small-cap or speculative stocks.

RELATED TERMS
  1. Big Four (or Big Five, Big Six, ...

    The largest accounting firms in the United States as measured ...
  2. Growth At A Reasonable Price - ...

    An equity investment strategy that seeks to combine tenets of ...
  3. Mid Cap

    A company with a market capitalization between $2 and $10 billion.
  4. Growth Stock

    Shares in a company whose earnings are expected to grow at an ...
  5. Market Capitalization

    The total dollar market value of all of a company's outstanding ...
  6. S&P MidCap 400 Index

    This Standard & Poor's index serves as a barometer for the ...
RELATED FAQS
  1. What is the best ETF for trading mid-cap stocks?

    Mid-cap stocks are those from companies with a market capitalization of between $2 billion and $10 billion. Exchange-traded ... Read Full Answer >>
  2. What is the best ETN for trading mid-cap stocks?

    Exchange-traded notes (ETN) are different from exchange-traded funds (ETF) in that their values are not backed by actual ... Read Full Answer >>
  3. What is the best managed fund for trading mid-cap stocks?

    Mid-cap stocks have a moderate capitalization and are officially valued between $1 billion and $8 billion. Actively managed ... Read Full Answer >>
Related Articles
  1. Insurance

    Market Capitalization Defined

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

    Small Caps Boast Big Advantages

    Find out why little companies have the greatest potential for growth.
  3. Fundamental Analysis

    Find Hidden Stock Gems That Analysts Ignore

    Just because it doesn't get a lot of coverage, doesn't mean a company isn't a great find.
  4. Active Trading

    Sorting Out Cult Stocks

    Is that crazy product going to be the next big thing? Learn how to evaluate these companies here.
  5. Mutual Funds & ETFs

    ETF Analysis: iShares MSCI Germany

    Learn about iShares MSCI Germany, which is a nondiversified exchange traded fund that invests principally in large-cap German companies.
  6. Chart Advisor

    Interested in Growth Stocks? See These 4 ETFs

    Given the rise in popularity of growth ETFs, there are several interesting growth stock choices for investors.
  7. Mutual Funds & ETFs

    Emerging Market ETFs EEM and VWO: Which is Better?

    Based on current conditions, one ETF will look more appealing than the other on the surface, but you always need to look below the surface.
  8. 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.
  9. Investing

    Market Cap

    Learn more about how market cap represents the "price tag" of a company.
  10. 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.

You May Also Like

Hot Definitions
  1. Xetra

    An all-electronic trading system based in Frankfurt, Germany. Launched in 1997 and operated by the Deutsche Börse, the Xetra ...
  2. Nuncupative Will

    A verbal will that must have two witnesses and can only deal with the distribution of personal property. A nuncupative will ...
  3. OsMA

    An abbreviation for Oscillator - Moving Average. OsMA is used in technical analysis to represent the variance between an ...
  4. Investopedia

    One of the best-known sources of financial information on the internet. Investopedia is a resource for investors, consumers ...
  5. Unfair Claims Practice

    The improper avoidance of a claim by an insurer or an attempt to reduce the size of the claim. By engaging in unfair claims ...
  6. Killer Bees

    An individual or firm that helps a company fend off a takeover attempt. A killer bee uses defensive strategies to keep an ...
Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!