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FINANCIAL TERMS

Large-Cap Stocks

Description

Large-cap stocks are stocks of companies with large market values. In simple terms, large-cap stocks are shares of big, well-established companies. Large-cap stocks are important because they often have a major influence on stock market indexes and investor sentiment. Many large-cap companies have strong brands, large revenues, and global operations. For example, Apple, Microsoft, and Amazon are examples of large-cap companies. Large-cap stocks are not always safe. Big companies can still face weak earnings, competition, regulation, or falling stock prices.