Posted in Finance, Accounting and Economics Terms, Total Reads: 129
Definition: Mega Cap
Just like Large Cap, Mid Cap and Small Cap companies, the Mega Cap companies are those companies that have a market capitalization of more than $100 billion. Companies like Wells Fargo, ExxonMobil, HSBC, Chevron etc. are some of the world’s best Mega Cap companies having very large market capitalization compared to other companies.
The Mega Cap companies are usually referred to as ‘Too Big to Fail’ because their bankruptcy may lead to failure of many smaller MNCs due to loan holdings thus leading to their bankruptcy and another recession like situation which happened due to the Lehman Brothers. The Mega Cap companies are usually the financial biggies like J P Morgan Chase, Berkshire Hathaway and also the oil and gas corporations like Exxon and China Petroleum Corporation.