Large-cap stocks: Large-cap stocks usually refer to stocks with large market value and important influence in the market. These stocks are usually issued by large mature enterprises, with high market awareness and stable financial situation. Large-cap stocks occupy a large weight in the stock index, and their stock price changes have an important impact on the overall trend of the stock market. For example, most stocks in Dow Jones Industrial Average and Standard & Poor's 500 Index are large-cap stocks.
Small-cap stocks: Small-cap stocks refer to stocks with small market value and relatively small influence in the market. These stocks are usually issued by small and medium-sized enterprises or start-ups with low market awareness and relatively unstable financial situation. Small-cap stocks have a low weight in the stock index, and their stock price changes have little impact on the overall market trend. For example, the constituent stocks in Nasdaq Composite Index and Russell 2000 Index are mostly small-cap stocks.
It should be noted that the criteria for dividing large-cap stocks and small-cap stocks are not absolute, and different markets may have different definitions. In addition, with the development of enterprises and the change of market environment, the scale and classification of stocks may also change. Therefore, when analyzing stocks, we need to make a comprehensive judgment according to the specific situation and market environment.