Gibrat's law
Gibrat's Law is a fancy way of saying that big things tend to get bigger and small things tend to stay small. Think about your toys. If you have a lot of toys, you're more likely to get even more toys because people will know you like toys and want to give you more. But if you only have a few toys, people might not think you're as interested and won't give you as many.
Gibrat's Law is basically saying that the same thing happens with companies. If a company is already very big, it's more likely to keep getting bigger because it has a lot of resources to keep growing. But if a company is small, it might not have as much money or people to help it grow, so it might stay small.
It's important to remember that Gibrat's Law isn't always true, though. Sometimes small companies can grow very quickly and become very big, and sometimes big companies can have problems and start to shrink. But in general, big things tend to get bigger and small things tend to stay small.
Gibrat's Law is basically saying that the same thing happens with companies. If a company is already very big, it's more likely to keep getting bigger because it has a lot of resources to keep growing. But if a company is small, it might not have as much money or people to help it grow, so it might stay small.
It's important to remember that Gibrat's Law isn't always true, though. Sometimes small companies can grow very quickly and become very big, and sometimes big companies can have problems and start to shrink. But in general, big things tend to get bigger and small things tend to stay small.