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Large Cap

Updated on March 17, 2023

‘Large cap’ refers to Large Capitalisation. In markets, large caps pertain to big companies with a high market capitalization. These companies are traded frequently on the exchanges in good volumes and they are highly liquid. It is easy to buy or sell the stocks of these large caps and they have good retail as well as institutional participation.

Features of Large Cap

Features of Large Cap are:
1. Large-cap companies are well established businesses with substantial market share.
2. These companies are generally considered stable and their share prices are not very volatile.
3. Large caps belong to companies with years of sound business operations and a well known brand image.

Benefits of Large Caps

Benefits of Large Caps are:
1. They are less volatile and thus provide stability in times of huge market fluctuations or during downtrends.
2. They are suitable for slightly conservative investors who want reasonable growth with less risk.
3. Large caps are highly liquid due to high demand and substantial volumes.