PREMIUM LEGAL RESOURCES
ASK A LAWYER
Mid Caps Stocks
Companies that have a market capitalization below $10 billion and above $1 billion are classified as mid caps. Market capitalization is determined by multiplying the number of shares outstanding by the current price of one share.
Some people still take $5 billion to be the limit at which mid caps end and large caps begin, but as big companies grow bigger and inflation exerts its inevitable tow, most people are coming to agree that $10 billion is the new watermark.
Mid caps are very big companies, but they tend to be regional rather than national. State utility providers and grocery chains with stores that span a few states are examples of companies that are often classified as mid caps, but mid cap companies can be found in all industries, from technology to shipping, finance to retail.
Although mid caps tend not to achieve national recognition, there are some exceptions to this, and there are many mid caps which are considered blue chips. The New York Times (NYT), Burger King (BKC) and Delta Airlines (DAL) are a few examples of nationally recognized mid caps.