Small-cap stocks:В Small-capВ stocks lie at the other end of the market capitalization spectrum.В Most small-capВ companies are either start-up enterprises or companies in the development stage. This makes it difficult for an investor to judge the stock вЂ“ which is why one hardly sees conservative investors investing inВ mid-capВ stocks.ДЈ. Unlike in the case ofВ large-capВ companies, a lot of information onВ mid-capВ companies isnвЂ™t publicly available. What attracts investors toВ mid-capВ stocks isВ the possibility ofВ investing in a company that could become an overnight success.В Mid-capВ companies have a tremdendous scope for growth and can potentially give higher returns in the 3-5-year investment horizon. Typical, their market capitalization lies between Rs5,000-20,000cr.В Mid-capВ companies are considerably smaller thanВ large-capВ companies in all fields of comparison вЂ“ revenue, profitability, employees, client base, etc. Mid-cap stocks:В Mid-capВ companiesВ can beВ consideredВ to border large-capВ andВ small-capВ companies on both ends of the market capitalization spectrum. In India, examples of large-capВ companies includeВ Wipro, TCS, and Infosys, among others.Дў. In other words, information onВ large-capВ companies is very readily available.

Most of these companies regularly disclose information through media, such as newspapers. Large-capВ companies have strong market presence and their stocks are generally consideredВ to beВ very safe (low risk). The market capitalization of these companies is very high вЂ“ above Rs20,000cr. As the name itself suggests, these are stocks of well-established companies that have been around for years. Large-cap stocks:В These stocks are the first class in market capitalization. HereвЂ™s a brief description of the types of market capitalization:ДЎ. Thus, its market capitalization will be: outstanding shares * price per share.ДЎ0,000*10 = Rs1,00,000 (Market cap of the company) It provides the investor with an estimated valuation of the company.В For instance: Suppose a company has 10,000 outstanding shares in the market, and each of themВ is pricedВ at Rs10. Market capitalization of a company refers to the total number of its outstanding shares in the market multipliedВ by the current price per share. What is Dematerialization & It's ProcessД«ased on their current market capitalization, stocks are classified intoВ large-cap,В mid-cap, andВ small-cap.Difference Between Demat and Trading Account.Documents Required to Open a Demat Account.Aims, Objectives and Importance of Demat Account.

Micro cap stocks definition