Large-Cap Stock
Also called: large cap, mega-cap, blue chips
A large-cap stock is a company worth roughly $10bn or more — the household names that dominate cap-weighted indexes. They tend to be more stable, more liquid, more likely to pay dividends and far more heavily analysed, which makes genuine mispricing rarer. The concentration risk is easy to miss: buying a broad index today means buying a portfolio in which a handful of mega-caps carry an outsized share of the outcome.