A large capitalization stock compared to a small capitalization stock typically has
A) a lower market price.
B) a smaller percentage spread.
C) about the same percentage spread.
D) less trading activity.

Question

Quizplus · Accepted Answer

Large capitalization stocks generally have greater liquidity and therefore a smaller percentage spread compared to small capitalization stocks. The market price and trading activity can vary for both types of stocks and are not necessarily indicators of the size of the company.

A Large Capitalization Stock Compared to a Small Capitalization Stock