Skip to main content Skip to main content
Not investment advice. Educational reading. See Disclaimer.
L.4 · BEGINNER · 2 MIN

Market Cap: Small, Mid, and Large

Companies are grouped by size based on their market capitalization. Each size category behaves differently in markets.

Quiz · 5 questions ↓

Live data

AAPL — Apple Market Cap, Share Price. Open AAPL on the Ledge to see current values.

Compare

CategoryMarket CapCharacteristics
Large-capOver $10 billionStable, well-researched, lower volatility (e.g., Apple, Microsoft)
Mid-cap$2B - $10BEstablished but still growing, often acquisition targets
Small-capUnder $2BHigher growth potential but higher risk of failure

Key point

Conventions vary. Oxford Ledge uses a 5-tier scheme internally: Mega ≥ $200B, Large $10-200B, Mid $2-10B, Small $300M-$2B, Micro < $300M. MSCI and S&P use slightly different cutoffs. The 3-tier table above is the most common public framing.

Chart

Key point

Small-cap stocks historically deliver higher returns on average, but with much greater volatility. A biotech startup might rise 500% or go to zero. Microsoft is unlikely to do either.

Try it

Use the **Screener** to filter by market cap. Sort descending to see the largest companies, then ascending to see the smallest.

Check-in

Which market cap category is most likely to be an acquisition target by a larger company?

Key insight

Diversifying across market cap sizes helps balance growth potential (small-caps) with stability (large-caps).

Check-in

A retiree wants steady, lower-risk holdings and dislikes large price swings. Based on this module's size categories, which fits the goal best?
Check your understanding

Sit with the ideas.

Which type of company is most likely to double in value over 5 years, but also most likely to go bankrupt?

Why:
Continue this lesson in the app →See it on a real ticker →