Small Cap vs. Large Cap

What Every Investor Should Know (But Most Don’t)

There’s something Wall Street insiders and professional investors understand deeply, but the average person often overlooks: market capitalization matters.

You’ve probably heard people throw around terms like "small-cap stock" or "large-cap ETF" and wondered: What does that even mean? Is it about how successful a company is? How expensive its stock is?

Not exactly.

What Is Market Capitalization?

Market capitalization is just a fancy way of saying how much a company is worth on the stock market.