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. Mid Cap

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

    The total dollar market value of all of a company's outstanding ...
  5. Growth Stock

    Shares in a company whose earnings are expected to grow at an ...
  6. S&P MidCap 400 Index

    This Standard & Poor's index serves as a barometer for the ...
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

    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.
  6. Investing

    Market Cap

    Learn more about how market cap represents the "price tag" of a company.
  7. 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.
  8. Investing Basics

    Growth Doesn't Matter For Mid Caps

    Featuring the right amount of growth and stability, mid caps represent a great opportunity to play the marketplace.
  9. Mutual Funds & ETFs

    What Are SPDR ETFs?

    Spiders are exchange-traded funds based on an index and can be a great vehicle both for making money and hedging against other risks.
  10. Investing

    How To Analyze Mid-Cap Stocks

    Mid-cap stocks often outperform both large-caps and small-caps with very little added risk.

You May Also Like

Hot Definitions
  1. Subsidy

    A benefit given by the government to groups or individuals usually in the form of a cash payment or tax reduction. The subsidy ...
  2. Sunk Cost

    A cost that has already been incurred and thus cannot be recovered. A sunk cost differs from other, future costs that a business ...
  3. Technical Skills

    1. The knowledge and abilities needed to accomplish mathematical, engineering, scientific or computer-related duties, as ...
  4. Prepaid Expense

    A type of asset that arises on a balance sheet as a result of business making payments for goods and services to be received ...
  5. Gordon Growth Model

    A model for determining the intrinsic value of a stock, based on a future series of dividends that grow at a constant rate. ...
  6. Cost Accounting

    A type of accounting process that aims to capture a company's costs of production by assessing the input costs of each step ...
Trading Center