Certified Senior Advisor (CSA) Practice Test

Question: 1 / 400

Which type of stocks have a market capitalization between $10 billion and $200 billion?

Penny stocks

Large-cap stocks

Mid-cap stocks

Mid-cap stocks refer to those companies with a market capitalization between $10 billion and $200 billion. This classification is significant because mid-cap companies typically represent a balance between growth potential and stability. They are often well-established businesses that have the potential for expansion, making them attractive to investors seeking a mix of risk and reward.

Large-cap stocks, on the other hand, represent companies with a market cap above $200 billion, while penny stocks are much smaller companies with a market cap under $300 million, and growth stocks are defined based on their potential for above-average earnings growth rather than their market capitalization. Understanding these distinctions is crucial for making informed investment decisions.

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Growth stocks

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