Mid-Cap stocks are stocks with a market capitalization between $2 Billion and $10 Billion. Mid-Cap stocks are positioned between large-cap and small-cap stocks.
Mid-Cap companies generally have higher growth possibilities than large-cap companies, because there is more room to grow. This comes at a price, since mid-cap stocks generally are more risky investments than large-cap stocks. In times of a market downturn, investors tend to look for safety, thus selling mid-cap stocks in higher volume than large-cap stocks, resulting in a faster falling stock price.