Every stock performs differently and it can be confusing before you pick the right stock. Categorizing them according to Market capitalization helps in making a better choice.Market capitalization, in simple terms, the SIZE of the company is calculated not by its assets and revenue but by using a simple formula:the total outstanding shares times its current share price in the market.So, a company with ONE Lakh outstanding shares and market price of THOUSAND RUPEES has market capitalization of TEN CRORE.    

In practice, there are THREE broad categories – Large cap, Mid cap and Small cap.

The stocks with market cap of TEN THOUSAND crore or more are called large cap stocks.Company stocks with a market cap of less than TEN CRORE are called mid to small cap stocks And one should do thorough research before investing in them.Teaming up large cap stocks for long term growth and small & mid cap for taking benefit of the market is one of the best strategy to build a strong portfolio.

Let’s learn more about the Markets in the next video.         

Investment in securities market are subject to market risks, read all the related documents carefully before investing

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