MidCap Stocks are Companies with Market Capitalization Between $2 and $20 Billion
Investing in MidCap stocks makes a lot of sense to many people. While largecap equities usually garner more attention from stock analysts and the financial press, midcaps fill an important role in a well-rounded financial portfolio. Midcaps are companies with a market capitalization between $2 and $20 billion.
The reasons people invest in midcap stocks are many. Often the reasons are related to what makes midcap stocks unique when compared to stocks of companies with small or large capitalizations. While compared to the stocks of smaller corporations, midcap companies are generally large enough and old enough to ensure corporate stability that may not be present in smaller companies. And when compared to largecap stocks, midcaps are often able to fluctuate in price enough to interest investors who seek potential growth not probable with largecaps.