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Don’t Make Me Say I Told You So 89

Large-cap Equities

3,515 Mutual funds

1,944 Stocks

Source: Morningstar, 2020

Large-cap is a term used by the investment community to

refer to companies with a market capitalization value of more
than $10 billion. These are generally large, well-established

companies with recognizable, household names. Large-cap
stocks are traditionally more stable than mid- or small-caps

because they have larger, more diversified revenues, and steady,

more predictable earnings. Additionally, large-cap stocks often
pay dividends, which may help investment returns and cushion
drops in share price during down markets. Large companies

also have more shares outstanding than smaller companies,
called a larger “float,” which makes them more liquid than the

stocks of smaller companies.

There are three major indexes that track and measure the

performance of large-cap stocks. The Dow Jones Industrial

Average (DJIA), which is the most well-known and most often
used, is made up of 30 large-cap stocks from various industries.

Chapter 3: You Must Have Growth In Your Portfolio