- What is Market Capitalization and it’s meaning and significance.
- Market Capitalization vs Market Value
- Market capitalization formula & how to calculate market capitalization
- Small Cap, Mid Cap & Large Cap definitions with examples
- Important points about Large Cap, Mid Cap & Small Cap Stocks
- Large Cap Stocks
- Mid Cap Stocks
- Small Cap Stocks
- Have Market Capitalization of more than Rs 20,000 Crores
- Safe to invests and there are many blue chip companies can easily qualify for large cap stocks.
- Are leading players in their sector and industry
- These stocks are liquid and therefore are much traded stocks on exchanges
- These companies are in operations for many years
- Most of the company has good corporate governance practices and therefore there are a lot information available on these stocks and companies in public domain.
- Have market capitalization in the line of Rs 5,000 crores to Rs 20,000 Crores
- Stocks are a bit safe to invest in when compared with small cap stocks but risky when compared with a large cap stocks
- These stocks range in between on all major parameters like revenues, sales, employees etc when compared with the traits of small cap stocks and the traits of large cap stocks.
- Have market capitalization of less than Rs 5,000 Crores
- Many a times stocks are risky to invest in from longer term perspective
- Information on such companies are less publicly available
- May have compliance and corporate governance related issues
- Requires a lot of years to become a large cap or a mid cap stock. This number usually could be more than 10 years.
- Every stock passes through the above mentioned three stages i.e. small cap stocks, mid cap stocks and large cap stocks.
- It may takes decades for a small cap stocks to become a large cap stocks
- Market capitalization category of any stocks may change over period of time. The change may be positive or negative as the market capitalization is the factor of CMP.
Very good information , thank you
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