What Are Large-Cap Stocks?

Fritz Mowery, a resident of Dallas, Texas, was the senior vice president and senior portfolio manager at Comerica Bank, where he managed over $12 billion in assets. He currently serves as president and chief investment officer at Mowery Capital Management, LLC. Fritz Mowery possesses over three decades of portfolio and asset management experience, with an equity portfolio consisting of mainly large-cap stocks.

Large-cap stocks are stocks of companies with value or market capitalization (the total value of a company's equity) of more than $10 billion. These stocks pose less risk compared to others. Also safe and stable, they pay reasonable dividends to their investors.

Examples of large-cap companies are Amazon, Apple, Walmart, Microsoft, and Facebook. While large-cap stocks are stable and safe, their stock prices do not grow rapidly like other smaller companies; thus, they may be unsuitable for some investors.

Big-cap companies are known for their transparency, making it easier for investors to evaluate public information about them. Large-cap stocks can be a valuable source of income when bond profits are low due to government activities to stimulate an economy. Furthermore, they usually out-perform the market towards the end of a business cycle expansion phase when an economy rises swiftly.