Business and Personal Finance Dictionary

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• MID-CAPITALIZATION (MID-CAP) STOCK
  
  A mid-cap stock is issued by a corporation whose market capitalization is between $500 million and $5 billion, making it smaller than the large-caps tracked by Standard & Poor's 500-stock Index (S&P 500) but larger than small-caps. Investors buy mid-cap stocks for their growth potential and their prices, which are typically lower than for large-caps. At the same time, these companies tend to be less volatile than small-caps, in part because they have more resources with which to weather an economic downturn. Mutual funds that invest in this type of stock are known as mid-cap funds.
  
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