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📈 Large Cap ETFs and Stocks 📈 🆕Please check @Xander882214 & @sydward ’s contribution to this post series by clicking the #marketcapitalizationcollaboration hashtag. 📌Market capitalization Market capitalization tells you how much money the stock market believes any company is worth. A company's market capitalization is found by “multiplying the price of a stock by its total number of outstanding shares”. (Fidelity, 2022) Small-cap stocks are generally stocks that are worth $300 million to $2 billion dollars. Mid-cap stocks are generally valued around $2 billion to $10 billion dollars and Large-cap stocks are generally within the $10 billion dollar and up range. Any company whose valuation is lower than $300 million dollars or above $200 billion dollars, would fit into the micro-cap or mega-cap stock designation. Micro-cap stocks can be valued as low as $50 million dollars and mega-cap stocks can have market capitalizations in the trillions. “On Aug. 2, 2018, Apple became the first company in history to achieve a market cap of $1 trillion. Today, Apple has a market cap of $2.59 trillion. That’s more value than the entire economic output (GDP) of all but six countries in the world — the U.S., China, Japan, Germany, India, and the U.K.” (Andrew, 2022) 📌Large-cap and Mega-cap Stocks Large-cap stocks are stocks that have a market capitalization of more than 10 billion dollars. Large-cap stocks are the heavy-weight boxing champs of the business world and as true heavyweights, these companies are household names, and if they pay dividends, they generally have a long history of paying dividends. Large-cap stocks as a category are made up of the global and multinational businesses that we all know and love. Large-cap companies are the companies that define the stock market and are listed within indexes like the Dow, the S&P 500, and the Nasdaq composite (Yahoo, 2022) Investing in Large-cap stocks has historically been considered a conservative investment strategy. Large-caps were generally considered to be a bet on large companies that are the biggest players in their respective fields. Large-cap stocks are only surpassed by mega-cap stocks. “Mega cap generally refers to companies with a market capitalization above $200 billion.” (Chen, 2022) By percentage, large-cap stocks only make up 15% of the US Stock market, while mega-cap stocks only make up 1%. Businesses must be very well managed and profitable in order to become large-cap or mega-cap stocks. Because public listed companies must report earrings, success in business tends to increase stock prices. 📌How inflation affects large-cap stocks As stated in the previous paragraph, large-cap and mega-cap stocks are an elite group of stocks that make up only 16% of the total US Stock market compared to small and medium-cap stocks, which make up a combined 63% of US stock market. (Lincoln, 2021) And because large-cap stocks generally tend to be the top companies in their field, they are generally able to use their size and resources to better withstand inflation or market downturns. “Because companies often are able to charge higher prices when inflation heats up — they have ‘pricing power,’ in other words — their earnings do not suffer as much as you might think. In fact, according to data back to 1871 provided by Yale University’s Robert Shiller, the S&P 500’s nominal earnings per share have grown faster, on average, when inflation has been higher.” (Hulbert, 2021) During the latest market volatility, which occurred in part due to record inflation, Chipotle ($CMG ) , which has a current market cap of about $40 billion, demonstrated its pricing power by raising its food cost by 4% to account for the company's rising cost. This price increase brings $CMG 's prices 10% higher over the last year but only as a response to the increasing cost of meat, avocados, freight, and employee wages. As a leader in the fast-casual business, $CMG believes that consumers will be willing to absorb the price increases because they have resisted raising prices for so long. In the past, $CMG has avoided raising prices by streamlining its supply chain cost, taking advantage of operational efficiencies, and increasing the quality of its products and as a result, $CMG is still able to provide its customers with their favorite meals for under $10 even after increasing its prices to cover rising cost (Kate, 2022). 👀 @sydward ’s post on #midcap stocks here 👀 @Xander882214’s post on #smallcap stocks here 📚 Additional reading: Andrew , L. (n.d.). Small-cap vs. Mid-Cap vs large-cap: Why the differences matter for your investments. Yahoo! Retrieved February 10, 2022, from Chen, J. (2022, January 31). Mega cap defintion. Investopedia. Retrieved February 10, 2022, from Fidelity. (2022). What is market cap? Fidelity. Retrieved February 10, 2022, from Hulbert, M. (2021, November 12). Opinion: If inflation is more than transitory, consumer prices and stocks could both keep climbing. MarketWatch. Retrieved February 10, 2022, from,is%20a%20good%20inflation%20hedge. Kate, K. (2022, February 9). Chipotle plans to hike menu prices again, citing inflation. CBS News. Retrieved February 10, 2022, from Lincoln, T. (2021, June 27). What is market cap? everything you need to know. Medium. Retrieved February 10, 2022, from Yahoo! (n.d.). Small-cap vs. Mid-Cap vs large-cap: Why the differences matter for your investments. Yahoo! Retrieved February 10, 2022, from
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Self-directed brokerage accounts and brokerage services for US-listed, registered securities, options, and Bonds, except for treasury securities offered through Jiko Securities, Inc., are offered to self-directed customers by Open to the Public Investing, Inc. (“Public Investing”), a registered broker-dealer and member of FINRA & SIPC. Additional information about your broker can be found by clicking here. Public Investing is a wholly-owned subsidiary of Public Holdings, Inc. (“Public Holdings”). This is not an offer, solicitation of an offer, or advice to buy or sell securities or open a brokerage account in any jurisdiction where Public Investing is not registered. Securities products offered by Public Investing are not FDIC insured. Apex Clearing Corporation, our clearing firm, has additional insurance coverage in excess of the regular SIPC limits. Additional information can be found here.

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Options Order Flow Rebate.
If you are enrolled in our Options Order Flow Rebate Program, Public Investing will share 50% of our estimated order flow revenue for each completed options trade as a rebate to help reduce your trading costs. The exact rebate will depend on the specifics of each transaction and will be previewed for you prior to submitting each trade. This rebate will be deducted from your cost to place the trade and will be reflected on your trade confirmation. Order flow rebates are not available for non-options transactions. To learn more, see our Fee Schedule, Order Flow Rebate FAQ, and Order Flow Rebate Program Terms & Conditions.

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Investments in Bonds are subject to various risks including risks related to interest rates, credit quality, market valuations, liquidity, prepayments, early redemption, corporate events, tax ramifications and other factors. The value of Bonds fluctuate and any investments sold prior to maturity may result in gain or loss of principal. In general, when interest rates go up, Bond prices typically drop, and vice versa. Bonds with higher yields or offered by issuers with lower credit ratings generally carry a higher degree of risk. All fixed income securities are subject to price change and availability, and yield is subject to change. Bond ratings, if provided, are third party opinions on the overall bond's credit worthiness at the time the rating is assigned. Ratings are not recommendations to purchase, hold, or sell securities, and they do not address the market value of securities or their suitability for investment purposes.

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Brokerage services for alternative assets available on Public are offered by Dalmore Group, LLC (“Dalmore”), member of FINRA & SIPC. “Alternative assets,” as the term is used at Public, are equity securities that have been issued pursuant to Regulation A of the Securities Act of 1933 (as amended) (“Regulation A”). This content is not investment advice. These investments are speculative, involve substantial risks (including illiquidity and loss of principal), and are not FDIC or SIPC insured. Alternative Assets purchased on the Public platform are not held in a Public Investing brokerage account and are self-custodied by the purchaser. The issuers of these securities may be an affiliate of Public Investing, and Public Investing (or an affiliate) may earn fees when you purchase or sell Alternative Assets. For more information on risks and conflicts of interest, see these disclosures. An affiliate of Public may be “testing the waters” and considering making an offering of securities under Tier 2 of Regulation A. No money or other consideration is being solicited and, if sent in response, will not be accepted. No offer to buy securities can be accepted, and no part of the purchase price can be received, until an offering statement filed with the SEC has been qualified by the SEC. Any such offer may be withdrawn or revoked, without obligation or commitment of any kind, at any time before notice of acceptance given after the date of qualification by the SEC or as stated in the offering materials relating to an investment opportunity, as applicable. An indication of interest to purchase securities involves no obligation or commitment of any kind.

Cryptocurrency trading, execution, and custody services are provided by Bakkt Crypto Solutions, LLC (NMLS ID 1828849) (“Bakkt”). Cryptocurrency is highly speculative, involves a high degree of risk, and has the potential for loss of the entire amount of an investment. Cryptocurrencies offered by Bakkt are not securities and are not FDIC insured or protected by SIPC. Your cryptocurrency assets are held in your Bakkt account. Bakkt is a licensed virtual currency business by the New York State Department of Financial Services and a licensed money transmitter, but is not a registered broker-dealer or a FINRA member. Your Bakkt Crypto account is separate from your brokerage account with Public Investing, which holds US-listed stocks and ETFs. Please review the Risk Disclosures before trading.

Treasury Accounts.
Investing services in treasury accounts offering 6 month US Treasury Bills on the Public platform are through Jiko Securities, Inc. (“JSI”), a registered broker-dealer and member of FINRA & SIPC. See JSI’s FINRA BrokerCheck and Form CRS for further information.

JSI uses funds from your Treasury Account to purchase T-bills in increments of $100 “par value” (the T-bill’s value at maturity). T-bills are purchased at a discount to the par value and the T-bill’s yield represents the difference in price between the “par value” and the “discount price.” Aggregate funds in your Treasury Account in excess of the T-bill purchases will remain in your Treasury Account as cash. The value of T-bills fluctuate and investors may receive more or less than their original investments if sold prior to maturity. T-bills are subject to price change and availability - yield is subject to change. Past performance is not indicative of future performance. Investments in T-bills involve a variety of risks, including credit risk, interest rate risk, and liquidity risk. As a general rule, the price of a T-bills moves inversely to changes in interest rates. Although T-bills are considered safer than many other financial instruments, you could lose all or a part of your investment. See Jiko U.S. Treasuries Risk Disclosures for further details.

Investments in T-bills: Not FDIC Insured; No Bank Guarantee; May Lose Value.

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JSI and Jiko Bank are not affiliated with Public Holdings, Inc. (“Public”) or any of its subsidiaries. None of these entities provide legal, tax, or accounting advice. You should consult your legal, tax, or financial advisors before making any financial decisions. This material is not intended as a recommendation, offer, or solicitation to purchase or sell securities, open a brokerage account, or engage in any investment strategy.

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Market Data. Quotes and other market data for Public’s product offerings are obtained from third party sources believed to be reliable, but Public makes no representation or warranty regarding the quality, accuracy, timeliness, and/or completeness of this information. Such information is time sensitive and subject to change based on market conditions and other factors. You assume full responsibility for any trading decisions you make based upon the market data provided, and Public is not liable for any loss caused directly or indirectly by your use of such information. Market data is provided solely for informational and/or educational purposes only. It is not intended as a recommendation and does not represent a solicitation or an offer to buy or sell any particular security.