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. Growth At A Reasonable Price - ...

    An equity investment strategy that seeks to combine tenets of ...
  2. Big Four (or Big Five, Big Six, ...

    The largest accounting firms in the United States as measured ...
  3. Growth Stock

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

    The total dollar market value of all of a company's outstanding ...
  5. Mid Cap

    A company with a market capitalization between $2 and $10 billion, ...
  6. S&P MidCap 400 Index

    This Standard & Poor's index serves as a barometer for the ...
Related Articles
  1. Market Capitalization Defined
    Insurance

    Market Capitalization Defined

  2. Small Caps Boast Big Advantages
    Trading Strategies

    Small Caps Boast Big Advantages

  3. Find Hidden Stock Gems That Analysts ...
    Fundamental Analysis

    Find Hidden Stock Gems That Analysts ...

  4. Sorting Out Cult Stocks
    Active Trading

    Sorting Out Cult Stocks

comments powered by Disqus
Hot Definitions
  1. Letter Of Credit

    A letter from a bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount. ...
  2. Due Diligence - DD

    1. An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to ...
  3. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  4. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  5. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  6. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
Trading Center