Final answer:
The market cap range typically traded in can vary widely, with small-cap companies being between $300 million and $2 billion, mid-cap companies between $2 billion and $10 billion, and large-cap companies over $10 billion. Advanced economies usually trade on the low end of market caps compared to emerging markets. The ideal range depends on individual investment strategy and risk tolerance.
Step-by-step explanation:
When discussing the market cap range typically traded in, it varies depending on the market and the types of investments in question. However, if we're referring to the commonly traded range of market capitalization for companies, it can vary widely. On the lower end, some traders might focus on small-cap companies, typically with a market cap of between $300 million and $2 billion. Moving up the scale, mid-cap companies range between $2 billion and $10 billion, while large-cap companies often have market caps over $10 billion, sometimes reaching into the hundreds of billions or even as a percentage, 4% equivalent to roughly ~$1 trillion and 5% more than $100 trillion for the very largest companies or entire markets.
For advanced economies, the market cap range traded in can be on the lower end, whereas in emerging markets, it could be considerably higher due to different growth potentials. It's important to recognize the industry as well because some sectors will have generally higher or lower market caps compared to others. Ultimately, the ideal market cap range for a trader or investor depends on individual strategy and risk tolerance.