Mid-cap stocks can also be called mid-cap stocks, which are stocks with an outstanding amount between large-cap stocks and small-cap stocks.

Mid-cap stocks refer to a class of stocks whose circulating market value is smaller than that of blue-chip stocks or large-cap stocks, but higher than that of small-cap stocks, occupying the main body of the whole stock market in quantity. There is no clear standard to define the scope of the circulation of mid-cap stocks, and the standards of mid-cap stocks are different in different markets and different periods.

Taking the current A-share market as an example, it is empirically believed that all stocks with a circulating market value ranging from RMB 1 billion to RMB 1 billion can be regarded as mid-cap stocks. Mid-cap stocks often combine the advantages of large-cap stocks and small-cap stocks and weaken their disadvantages. For example, mid-cap stocks have more room for growth than large-cap stocks, and are more liquid and more stable than small-cap stocks.

in addition, the business of mid-cap companies is usually relatively simple and easy to analyze, and the market has fully studied it. Moreover, due to the largest number, investment opportunities are more likely to appear. There are funds in the market that specialize in investing in mid-cap stocks. Generally speaking, small and medium-sized blue-chip stocks are easier to pull up, while large-cap stocks will be weak because of their large plates.

how to define large, medium and small?

The concept of A-share's medium, small and medium-sized stocks is actually a relative concept, and there is no clear official explanation. Generally speaking, large-cap stocks are stocks with a circulating share capital of over 1 million. There are many such stocks in the stock market, and some stocks with good texture are large-cap stocks. And there are billions or even billions of circulating stocks that are supermarket large-cap stocks, such as Sinopec.

Small-cap stocks, on the one hand, have less than 15% participants, and on the other hand, the tradable share capital issued by listed companies is less than 5 million. The mid-cap stocks belong to the main body of the market. Many stock investors invest in this kind of stock, and they have no obvious positioning value, because different stocks have different requirements in different periods.

However, in the general market, any stock with a circulating share capital of 5 million to 1 million shares can be regarded as a mid-cap stock. The value investment of fund managers refers to the strategy of value investment. For example, Buffett's value investment style buys stocks with excellent profitability at a reasonable price. However, different fund managers have different understandings of how to calculate a reasonable price and how to calculate excellent profitability.