Size

Schlindwein AssociatesInvesting, Market Observations

Big is not always better, but size can impact both a company’s financial outcome and the rate of return from owning its stock. While larger companies have more resources than smaller ones, more can be expected of them as a result. With a smaller scale operation, a successful small company can achieve a high growth rate but also must deploy its limited resources very efficiently and effectively. Differences in company size can be a factor in distinguishing among company stocks and the values they are assigned. Market capitalization – shares outstanding x stock price – is a standard measure of size. A review of some stock size characteristics can provide perspective for investing ahead.

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