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Finance For Dummies

Finance For Dummies offers personal finance information on investing, retirement investing, finance, insurance, credit cards, loans and more. Personal finance education is our goal.

Thursday, September 21, 2006

Domestic Large Capitalization Stocks

Domestic large cap stocks are very popular with investors because they are the best-known companies out there. We will lay out the main characteristic when investing in large caps.

  1. Investment objectives are growth and income along with diversification
  2. Because they are large company there is always a market so they are very liquid
  3. Just like any other stock there is a high probability of fluctuation of principal and return.
  4. Your capital gains and dividends taxed in the year received

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