Large Capitalization Companies

D

The correct answer is D. Large cap companies.

Large cap companies are those that have a market capitalization value of more than $10 billion, indicating a high level of stability, growth, and established market presence. However, companies with a market capitalization of $2 billion or more but less than $10 billion are generally classified as mid-cap companies.

Market capitalization is calculated by multiplying the current market price per share by the total number of outstanding shares. It is a measure of the total value of a company's outstanding shares and is used to categorize companies into different categories based on their size. The three main categories are small-cap, mid-cap, and large-cap.

Small-cap companies are those with a market capitalization of less than $2 billion and are generally considered to be riskier investments due to their relatively low market share and revenue. These companies may have high growth potential but are also more vulnerable to market volatility.

Mid-cap companies are those with a market capitalization between $2 billion and $10 billion. They are considered to be more stable and established than small-cap companies, but with more growth potential than large-cap companies.

Growth companies, on the other hand, are companies that are expected to grow at a faster rate than the overall market due to their innovative business model or new products and services. These companies may be small, mid-sized, or large, and are typically characterized by high price-to-earnings ratios and relatively high valuations.

In summary, companies with a market capitalization of $2 billion or more but less than $10 billion are classified as mid-cap companies, while those with a market capitalization of more than $10 billion are classified as large-cap companies. The correct answer to the question is D. Large cap companies.