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Finance Glossary

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Over 700 finance terms, Shmooped to perfection.

Large Cap

Definition:

Large cap = "large market capitalization companies." Nope, they don't wear oversize Stetsons. They are usually big companies with lots of shares and lots of dollars per share.

If you want to figure out a company's market capitalization, multiply the number of shares a company has outstanding by the stock price per share.

Most mutual funds these days define large cap stocks as those with market caps over $15 billion.