The Canadian Large Caps Stock Blog
Welcome to the Canadian Large Caps blog. Whether you’re day trading or investing for the long term it’s always important to keep an eye on investing trends and what stocks are worth buying. Here at the Canadian Large Caps blog we’ll cover trends in sectors, as well as analysis of large cap stock that are trading on the Toronto Stock Exchange.
What Is A Large Cap Stock?
The term large cap is used by many in the investing world to indicate a company that has a market capitalization over $5 billion. This number is calculated by multiplying the number of outstanding shares in the company by the share price. Although you don’t necessarily need to worry about that, sufficed to say that large caps are generally large well established companies that trade publicly on the stock market.
Why Large Cap Stocks?
Large cap stocks have two significant factors that make them appealing to investors. Safety and liquidity. Since most large companies are well established and well funded, they are at less of a risk of going under. Your money is more likely to be safe investing in a large cap company than in a small cap company or penny stocks. Of course, with decreased risk there is a decrease in reward but if you’re in it for the long run you’re likely to still make a good return on your investment.
The other main factor of Large Cap stocks is their liquidty. This is a great feature for traders more so than long term investors but it basically means that there is a lot of exchanging in most large cap stocks. With a lot of liquidity you have a better chance of getting the price you want either when you’re selling or buy a stock. It also means that the spread between the bid and ask is usually very close together since there will usually be many people being able to come to agreement on a price.
What You’ll See On This Blog
This blog will present some general investing ideas and economic fundamentals as well as many specific investing strategies. Further to this will be stock profiles that will present fundamental and technical analysis of a specific company and where we think it might be going. This site will never suggest that you buy or sell any stock. You should always contact an investment professional before investing any money.
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