The investment analysts at 401k Forum have decided to help you get down to basics with a series of articles about the different asset classes. First of all, let's define asset classes. Studies have shown that the key to successful investing is to spread your wealth among different asset classes. So let's get started.
Market caps change daily, as long as there is a change in stock price.
Large-cap stocks are a broad subset of the stock market. Generally considered integral to an investor's diversified portfolio, they tend to have fairly similar characteristics and so are grouped together. As a whole, large-cap stocks are an important part of the economy and therefore essential to asset allocation . Although there are exceptions, larger companies often have slower growth rates, but are less risky investments than many smaller companies. As long as the stock price goes up, so does market cap.