What is the difference between market cap large-cap, mid-cap, and small-cap stocks?

Market capitalization (market cap) = share price × total shares outstanding. Large-cap stocks (market cap > $10 billion) like Apple or Microsoft are established, stable companies. Mid-cap ($2–$10 billion) offer growth potential with moderate risk. Small-cap (< $2 billion) offer higher growth potential but more volatility. Most diversified portfolios include a mix, often tilted toward large-cap for stability.