Middle Market Firm


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.

BREAKING DOWN '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.

  1. Growth Stock

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

    The total dollar market value of all of a company's outstanding ...
  3. Growth At A Reasonable Price - ...

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

    A company with a market capitalization between $2 and $10 billion.
  5. Big Four (or Big Five, Big Six, ...

    The largest accounting firms in the United States as measured ...
  6. Middle Market

    Definition of middle market
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. Chart Advisor

    These 3 Charts Suggest That The Markets Could Head Lower

    Markets have been moving higher in October, but these three charts suggest that the story could be getting ready to change.
  6. Investing

    Middle Market Investment Banks

    We take a close look at investment banks working with middle market companies.
  7. Investing Basics

    3 Undervalued Mid-Cap Stocks for Your Portfolio

    These three midcap stocks have significant long-term potential.
  8. Mutual Funds & ETFs

    ETF Analysis: PowerShares FTSE RAFI US 1000

    Find out about the PowerShares FTSE RAFI U.S. 1000 ETF, and explore detailed analysis of the fund that invests in undervalued stocks.
  9. Mutual Funds & ETFs

    ETF Analysis: iShares S&P Mid-Cap 400 Growth

    Learn about the iShares S&P Mid-Cap 400 Growth exchange-traded fund, which invests in U.S. equities of mid-cap companies that show above-average growth rates.
  10. Mutual Funds & ETFs

    ETF Analysis: Vanguard Mid-Cap Value

    Take an in-depth look at the Vanguard Mid-Cap Value ETF, one of the largest and most popular mid-cap funds in the U.S. equity space.
  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 >>

You May Also Like

Hot Definitions
  1. Take A Flier

    The slang term for a decision to invest in highly speculative investments.
  2. Bar Chart

    A style of chart used by some technical analysts, on which, as illustrated below, the top of the vertical line indicates ...
  3. Take A Bath

    A slang term referring to the situation of an investor who has experienced a large loss from an investment or speculative ...
  4. Black Friday

    1. A day of stock market catastrophe. Originally, September 24, 1869, was deemed Black Friday. The crash was sparked by gold ...
  5. Turkey

    Slang for an investment that yields disappointing results or turns out worse than expected. Failed business deals, securities ...
  6. Barefoot Pilgrim

    A slang term for an unsophisticated investor who loses all of his or her wealth by trading equities in the stock market. ...
Trading Center