In periods of uncertainty many investors buy into large cap stocks, confident that the world's biggest businesses are best placed to weather whatever storm is brewing. But large caps have many more characteristics.
Q. What is your definition of large-cap companies? A. Large-cap means large capitalisation, ie those companies that have big market valuations. The traditional definition is the FTSE 100 – the 100 largest companies in the stock market by valuation. That is the broad definition of large cap. Some people would define it slightly more narrowly again and maybe use just the largest top 10 or top 20 stocks in the market, again by market capitalisation. Q. So just how large is large? A. The very large are in the hundreds of billions of pounds of market capitalisation. It is very inte...
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