Glossary Group: Glossary

Small capitalization investments involve stocks of companies with smaller levels of market capitalization (generally less than $2 billion) than larger company stocks (large cap). Small cap investments are subject to considerable price fluctuations and are more volatile than large company stocks. Investors should consider the additional risks involved in small cap investments.

Refers to US company stocks with a relatively mid market capitalization. The definition of mid cap can vary among brokerages, but generally it is a company with a market capitalization of between $2 billion and $10 billion. Stock represents ownership and control in a corporation and may pay dividends as well as appreciate in value.

Large capitalization investments involve stocks of companies generally having a market capitalization greater than $2 billion. The value of securities will rise and fall in response to the activities of the company that issued them, general market conditions and/or economic conditions.

Investment in U.S. company stocks. Stock represents ownership and control in a corporation and may pay dividends as well as appreciate or depreciate in value. The value of a stock will rise and fall in response to the activities of the company that issued it, general market conditions, and economic conditions.