These investments are in stocks or shares of ownership issued by publicly traded companies.
They are traded on stock exchanges such as the NYSE or NASDAQ.
The asset class of equities is subdivided by market capitalization into small-cap, mid-cap, and large-cap stocks.
Market capitalization refers to the total dollar market value of a company’s outstanding shares of stock.
It is calculated by multiplying the total number of a company’s outstanding shares by the current market price of one share.