Mid-cap Stock

A mid-cap (mid-capitalization) stock is issued by a corporation with a market capitalization between that of a small-cap stock and a large-cap stock. A mid-cap stock offers a middle ground between the growth potential of a small-cap and the reduced volatility of a large-cap. A mid-cap stock tends to offer greater growth potential than a large-cap, and also tends to be more volatile than a large-cap stock. Like a small-cap stock, a mid-cap stock emphasizes growth, but a mid-cap stock tends to pay a relatively larger share of its earnings as dividends. A mid-cap stock tends to be less volatile than a small-cap stock and less vulnerable in economic downturns. A mid-cap stock is often defined as having a capitalization ranging from $2 billion to $10 billion, although capitalization ranges for what constitutes a mid-cap stock do vary over time.