Large-capitalisation for Dummies

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!