Certified Senior Advisor (CSA) Practice Test

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What defines mid-cap stocks?

Stocks with market capitalization under $1 billion

Stocks with a market capitalization between $1 billion and $2 billion

Stocks with a market capitalization between $2 billion and $10 billion

Mid-cap stocks are typically defined as companies with a market capitalization between $2 billion and $10 billion. This classification places them between small-cap stocks, which usually have a market cap under $2 billion, and large-cap stocks, which have market capitalizations exceeding $10 billion.

Investors often view mid-cap stocks as possessing a balance of stability and growth potential. They may have established business models and market presence while still retaining the opportunity for significant expansion that smaller companies could offer. Understanding this classification helps investors make informed decisions about portfolio diversification, risk management, and potential return on investment.

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Stocks with market capitalization over $10 billion

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