What is the difference between Big and small stocks?

The big and small labels are also attached to the major stock exchanges and indexes, which also leads to confusion. The Dow Jones Industrial Average (DJIA) is viewed as consisting of only big-cap stocks while the Nasdaq is often viewed as being comprised of small-cap stocks. These perceptions were generally true before 1990, but have since changed.

How much is a small-cap stock worth?

Although the value of small-cap stocks may vary from broker to broker, the general consensus today is that they have market caps ranging from $250 million to $2 billion. One misconception people have about small-caps is that they are startup companies or are just brand-new entities that are breaking out.

What is the difference between Big-Cap and small-cap stocks?

The meanings of big-cap and small-cap are generally understood by their names, which indicate how valuable they are in terms of market capitalization. Big-cap stocks—also referred to as large-cap stocks—are shares of larger companies. Small-cap stocks, on the other hand, are shares of smaller companies.