Todd Lovejoy is an accomplished change agent who has served as a business leader for over three decades. As the owner and founder of California-based TAL Management Services, Todd Lovejoy provides management services and financing to companies ranging from small startups to mid-cap-sized firms.
A mid-cap label indicates a firm’s value on the stock market is greater than $2 billion but less than $10 billion. This is in contrast to small-cap firms, which are valued below $2 billion, and large-cap companies, which are valued above $10 billion. The “cap” in these three categories refers to capitalization.
Also known as market cap, capitalization is used to value companies and assess risk. The current market price of company stock is multiplied by all outstanding shares of stock to determine the capitalization amount. Although a lower capitalization represents a smaller or middle-sized firm, it also indicates a greater potential for growth. The smaller the firm, the greater the risk. Therefore, mid-cap firms offer both growth potential and less risk than small-cap companies.
