Large-capitalisation for Dummies
adjective
What does Large-capitalisation really mean?
Hey there, I'm here to help you understand what "large-capitalisation" means. Don't worry, I'll make it easy for you to understand!
So, let's break it down. First, let's talk about "capitalisation." Now, capitalisation, in this context, doesn't refer to using capital and small letters in writing. No, no. In finance and investing, capitalisation is a fancy word that describes the total value or worth of a company, also known as its market capitalisation. It's calculated by multiplying the number of shares a company has by the current price of each share. Think of it as the value of a company in the stock market.
Now, let's move on to "large-capitalisation." It simply means companies with a BIG value! When we say a company has a large-capitalisation, we're talking about companies that are really huge in terms of their value in the stock market. These companies usually have a lot of shares available, and their stock prices are often quite high.
Think of it this way: imagine a candy store. Each candy bar is like a share of a company, and the total worth of all the candy bars in the store is the capitalisation. Now, if the candy store is huge and has lots of different types of candy bars (shares), then we can say it has a large-capitalisation.
It's important to know about large-capitalisation companies because they often attract a lot of attention from investors, and they can have a big impact on the overall stock market. Many large and well-known companies like Apple, Microsoft, and Amazon fall in this category.
So, in a nutshell, "large-capitalisation" means companies that have a really high value in the stock market. They're like big, popular candy stores that everyone wants to visit. It's good to be aware of these companies because they can have a great influence on the stock market. I hope that makes sense to you!
Revised and Fact checked by Michael Davis on 2023-10-29 00:49:52
Large-capitalisation In a sentece
Learn how to use Large-capitalisation inside a sentece
- Large-capitalisation stocks are shares of big companies like Apple, Microsoft, and Amazon that have a high total value.
- Investors often look to invest in large-capitalisation companies because they are considered more stable and less risky.
- If you buy shares in a large-capitalisation index fund, you will own a small portion of many big companies.
- Large-capitalisation companies have a lot of resources and are able to invest in research and development to create new products.
- A pension fund may allocate a portion of its assets to large-capitalisation stocks to ensure long-term growth and stability.
Large-capitalisation Synonyms
Words that can be interchanged for the original word in the same context.
Large-capitalisation Pertains To
Words to which the original word is relevant