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 for their ability to offer both growth and relative stability. Investing in mid-cap stocks can provide diversification within a portfolio, as they often perform differently than large-cap and small-cap stocks. They may be more volatile than large-cap stocks but can also offer greater growth potential, making them an attractive option for investors looking to balance risk and reward.