Mid-Cap / Small-Cap Stocks

Companies are commonly grouped into large-cap, mid-cap, and small-cap based on their total market value, with mid- and small-caps being meaningfully smaller than the large, established names. Smaller companies can grow faster percentage-wise (a smaller base is easier to grow from proportionally), but are also more volatile, less liquid, and more vulnerable during market downturns or economic stress than large, established businesses. A portfolio's mix across these size categories is a real component of overall asset allocation and risk level, not just an afterthought within the 'equity' bucket.