Large-cap
Māori translation:
Definition
Large-cap (large capitalisation) companies have a market capitalisation (total dollar value) of around US$10 billion or more. They're typically well-established, industry-leading global companies with a significant market presence. Some are also blue chip companies, such as Apple (AAPL), Microsoft (MSFT), and Johnson & Johnson (JNJ).
Characteristics of large-cap companies are:
- Stability: Generally stable and less volatile than mid-cap and small-cap companies because most have been on the share markets for several decades, and have multiple revenue streams
- Dividends: Pay regular dividends, making them an option for income-focused investors
- Lower growth potential: May have lower growth potential compared to mid-cap and small-cap companies because they are already well-established (i.e. no longer in the growth phase of business; however Big Tech companies continue to innovate, so continue to grow revenue)
We acknowledge and thank the FMA, Dr Karena Kelly and Brook Taurua Grant, the RBNZ and the Māori Dictionary for their research which helped us with te Reo Māori kupu for this glossary.
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