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re: Question regarding Market Cap

Posted on 1/22/14 at 4:17 pm to
Posted by lighter345
Member since Jan 2009
11869 posts
Posted on 1/22/14 at 4:17 pm to
LINK

This should help explain.


Generally though the smaller the market cap the higher risk/reward and the larger the market cap the lower risk/reward.

Large is generally $10billion plus. Medium $1-10billion and small is $1billion and below and then you get into micro/nano caps I guess.

This post was edited on 1/22/14 at 4:21 pm
Posted by OnTheBrink
TN
Member since Mar 2012
5418 posts
Posted on 1/22/14 at 4:23 pm to
Thanks for that, the investopedia link I found earlier didn't include the "Why it's important" section.

Another question though, of the examples I gave above, and using

quote:

Generally though the smaller the market cap the higher risk/reward and the larger the market cap the lower risk/reward.


It is safe for me to assume the MSFT is the best of those as far as being "safe", and I use that term loosely? And Hershey is more risky?

ETA another probably incredibly stupid question, but wouldn't someone like MSFT with a high market cap compared to Hershey with a lower one mean that there are way more shares outstanding? And here comes the real stupid part, but could I assume it is because no one wants them?
This post was edited on 1/22/14 at 4:25 pm
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