A stock that is issued by a very large company, specifically with a market capitalization of ranging between $5-10 billion. Generally, there is no universally accepted range of market capitalization to set apart large-cap companies. Large-cap companies have a long record of spectacular performance and are well-known for their long-term portfolios. Companies with large earnings and wide earnings base have a longer corporate history and are therefore much transparent and easier to track and analyze than other companies. Large-cap stocks allow investors to invest in relatively stable, dividend-paying companies which do well regardless of the state of economy or economic cycle.

It is also known as a big-cap stock.