Large Cap

Shares are divi­ded into large caps, mid caps and small caps accor­ding to their market capi­ta­liza­tion, wher­eby the term “cap” is short for capi­ta­liza­tion. Market capi­ta­liza­tion is calcu­la­ted by multi­ply­ing the number of shares of the company traded on the stock exch­ange by the current share price. Large caps, the compa­nies with the highest stock market value, include those with a market capi­ta­liza­tion of over two billion euros. Mid caps are compa­nies with a market capi­ta­liza­tion of between 500 million and two billion euros, while small caps have a market capi­ta­liza­tion of less than half a billion euros. Small caps are the equity cate­gory with the highest expec­ted returns.