Mid cap stocks refer to shares of companies with a market capitalization typically between $2 billion and $10 billion. These companies are often in a growth phase, balancing the stability of larger firms with the potential for higher returns associated with smaller companies. Investors may find mid cap stocks appealing due to their ability to grow faster than large caps while being less volatile than small caps. Investing in mid cap stocks can provide diversification in a portfolio. They often represent a wide range of industries, including technology, healthcare, and consumer goods. As these companies expand, they may offer opportunities for capital appreciation, making them an attractive option for investors seeking growth.