Mid-capitalization
Mid-Cap
Mid-capitalization (mid-cap) stock.
A mid-cap stock is one issued by a corporation whose market capitalization falls in a range between $2 billion and $10 billion, making it larger than a small-cap stock but smaller than a large-cap stock.
Market capitalization is figured by multiplying the number of either the outstanding or the floating shares by the current share price. Investors tend to buy mid-cap stocks for their growth potential. Their prices are typically lower than those of large-caps.
At the same time, these companies tend to be less volatile than small-caps, in part because they have more resources with which to weather an economic downturn.