---
title: Penny Stocks, Medium and Large Caps
description: There are hundreds of different equities to invest in on various exchanges. Some are priced a few cents per share, others thousands of dollars.
image: https://blog.easyequities.com.au/hubfs/Blog2.jpg
---

# Penny Stocks, Medium and Large Caps

There are hundreds of different equities to invest in on various exchanges. Some are priced a few cents per share, others thousands of dollars.

All fall into one of three categories:

- Small caps (aka penny stocks)
- Medium caps
- Large caps

 The values for determining small, medium and large-cap shares can be vague and differ between countries but as an example, large caps in the US typically have a market capitalization of $10 billion-plus.

**Market cap—or market capitalization—refers to the total value of a company's shares**: The price of a share multiplied by the total number of outstanding shares gives you market cap.

For example:

A company with 10 million shares selling at $50 a share would have a market cap of $500 million.

Market capitalization is often used to make investment decisions as it gives investors an idea of the size of one company versus another company. But **is bigger always better?**

**Investing in large-cap companies is thought to provide long-term rewards and less risk**, as the companies are well-established and stable.

**Mid-cap companies have great growth potential** but are often seen as constrained by track record and resources.

**Small-cap companies are often considered a high-risk investment choice due to factors like their limited financial resources**. However, many companies fall into this category, and so there are many people who don’t want to lose out on the opportunities they offer.

Often shares are over or under-valued based on a variety of factors – some logical, some emotional. Like so much in investing, there are no right or wrong answers. Invest in penny stocks, medium or large caps, or a mixture of the three. But make sure you know your risk appetite, have a plan, and do your research.

**New to investing and want to know more about the latest research?

**

[![Should You Be All-in In Stocks All The Time? 🤔](https://1690236.fs1.hubspotusercontent-na1.net/hub/1690236/hubfs/AU-Stocks-All-In-Blog.jpg?width=1200&length=1200&name=AU-Stocks-All-In-Blog.jpg) ](https://blog.easyequities.com.au/easyeducation/should-you-be-all-in-in-stocks-all-the-time)

Investing in stocks has been a great way to build wealth over time. The big challenge that investors face, though, stems from the fact that stock market returns are never guaranteed.

[![What are Corporate Actions and Why Should You Care?](https://1690236.fs1.hubspotusercontent-na1.net/hub/1690236/hubfs/Blog%20Header%207%20JPG-1.jpg?width=1200&length=1200&name=Blog%20Header%207%20JPG-1.jpg) ](https://blog.easyequities.com.au/easyeducation/corporate-actions-and-why-you-should-care)

For some investors corporate actions might be a blessing in disguise while it's a curse for others, depending on which side of the profit line you stand.

 

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