What is the significance of market capitalization in stock selection

[AndyGoodman]

What is the significance of market capitalization in stock selection

[SaoirseSchaefer]

Market capitalization is super important when picking stocks because it gives you a quick snapshot of a company's size and stability. Generally, larger companies (like those with a big market cap) tend to be more stable and less risky, while smaller companies might offer higher growth potential but come with more volatility. So, understanding market cap helps you figure out what kind of risk you're comfortable with and how it fits into your overall investment strategy.