- Number of share of a company multiplied by the price of each share.
Example
- If a firm has 100 shares, priced at Rs 50 per share
- Then the market cap is Rs 5000
Large market cap companies
- Mature, established firms in the market
- Known for giving dividends rather than rapid growth
- SEBI defines a large-cap company as one that features within the first 100 companies by market cap on the stock market
Mid-cap companies
- Defined by SEBI as a company that features between 101 to 250 companies by market cap on the stock market
- Higher rate of return and higher risk as compared to large market cap companies
Small cap companies
- Defined by SEBI as a company that features in 251 and below companies by market cap on the stock market
Sources