When investing in the stock market, it’s important to know the difference between large-cap and small-cap stocks.
A large-cap stock refers to a stock from a company that is very stable and an industry leader. These stocks tend to be more expensive but come with less risk.
Small-cap stocks often have larger growth potential, but they tend to be riskier.
You can consider investing in both large-cap and small-cap stocks as you look to build a diversified portfolio.