What is the term used to describe the total value of a company's outstanding shares?

Market Value Share Price Market Capitalization Enterprise Value

Which of the following categories typically represents companies with the highest market capitalization?

Small-cap Mid-cap Large-cap Micro-cap

Large-cap stocks are often considered to have which of the following characteristics?

High Volatility High Growth Potential Moderate Returns Significant Risk

Why are large-cap stocks often favored by investors seeking stability?

They are immune to market fluctuations. They tend to be less affected by market downturns. They guarantee high returns. They are primarily driven by capital appreciation.

What is a key drawback of investing in large-cap stocks?

High Volatility Limited Growth Potential Low Dividend Payouts Lack of Liquidity

Which of the following is an alternative investment option to large-cap stocks?

Fixed Deposits Real Estate Mid-cap Stocks Commodities

What is a defining characteristic of blue-chip stocks?

They are exclusively found in the technology sector. They represent companies with a strong financial track record. They are highly speculative investments. They are primarily issued by startups.

What is a primary reason large-cap stocks are considered relatively low risk?

They are backed by government guarantees. They are not subject to market forces. They are typically well-established companies with financial stability. They offer guaranteed high returns.

What is a key factor that makes large-cap stocks liquid?

Their limited supply Their complex trading mechanisms Their high demand and active trading Their association with emerging markets

Why might an investor choose mid-cap stocks over large-cap stocks?

For their lower volatility For their guaranteed dividend payouts For their potential for higher growth For their established market presence