Word: Large-Capitalization
Part of Speech: Adjective
Definition: The term "large-capitalization" (often abbreviated as "large-cap") refers to stocks of companies that have a market capitalization of five billion dollars or more. Market capitalization is a way to measure the total value of a company's outstanding shares of stock.
Usage Instructions: You would use "large-capitalization" when discussing investments, finance, or the stock market. It helps categorize companies based on their size and financial stability.
Example Sentence: "Investing in large-capitalization companies can be a safer choice because they are usually more stable and established than smaller companies."
Advanced Usage: In finance, large-cap stocks are often considered less risky than small-cap or mid-cap stocks. Investors may include large-cap stocks in their portfolios for a balance of risk and return.
Word Variants: - Large-Cap: This is a shortened form of "large-capitalization" that is commonly used in conversations about the stock market. - Market Capitalization: The total market value of a company's outstanding shares.
Different Meaning: "Large-capitalization" primarily refers to the size of a company in the stock market. It does not have other meanings outside of finance.
Synonyms: - Blue-chip (referring to well-established companies) - Mega-cap (for even larger companies, often with a market cap of $200 billion or more)
Idioms and Phrasal Verbs: While "large-capitalization" itself doesn’t have idioms or phrasal verbs, you might hear phrases like "play it safe" when discussing investment strategies involving large-cap stocks, meaning to choose safer, more stable options.