Mid-cap
Mid-cap refers to companies with a market capitalisation (total dollar market value; also called market cap) of between US$2 billion and US$10 billion. Mid-cap companies sit between large-cap companies, valued at US$10+ billion, and small-cap companies, valued at between US$300 million and US$2 billion. Market cap is set by the share market, calculated by multiplying the company's current share price by its total number of outstanding shares. Examples of mid-cap companies on the US share markets the NYSE and the Nasdaq include Tinder and Hinge’s parent company, Match Group (MTCH), The Gap (GAP), Play-Doh and Nerf Gunmaker, Hasbro (HAS), and SentinelOne (S).
Mid-cap companies have three main characteristics
- Growth potential: Because they're often in the expansion phase of their business cycle
- Stability: They tend to be more stable than small-cap companies but offer higher growth potential compared to large-cap companies
Some investors prefer mid-cap stocks because of the potential balance between growth and stability.
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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