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<<Can someone tell me the point where a small cap becomes a mid cap and a mid cap becomes a large cap?>>

Here's an explanation I printed in our weekly newspaper feature (for info on how to get it in your paper: http://www.fool.com/specials/1999/sp991117paper.htm)

Q. What's the difference between "small-cap" and "large-cap" stocks? -- Duc Tu, Los Angeles, CA

A. The cap is a quick way of placing an approximate price tag on a company. "Cap" refers to the capitalization of a firm, which can be calculated by multiplying the stock price by the number of shares outstanding. For example, if Holy Karaoke, Inc. (ticker: HYMN) has 10 million shares outstanding priced at $60 each, its capitalization is $600 million. Estimates vary and change over time, but here's the Motley Fool's rough take: If a company's capitalization is $5 billion or higher, it's a large-cap; between $500 million and $5 billion, a mid-cap; $150 to $500 million, a small-cap; and less than $150 million, a micro-cap. If mid-cap HYMN were to be acquired by another company, that company would have to cough up $600 million -- or more -- as buyouts generally occur above market prices.

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Remember, everyone -- our Foolanthropy drive is drawing to a close -- please consider sending in a little something for some amazing charities. http://www.fool.com/foolcharityfund/1999/driveintro.htm
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