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WHAT IS MARKET
CAPITALIZATION
INTRODUCTION
MARKET CAPITALIZATION IS THE TOTAL MARKET VALUE OF THE
OUTSTANDING SHARES OF A COMPANY. IT CAN BE USED AS A GUIDE FOR
CHOOSING THE CORRECT SHARES TO INVEST IN.
YOU CAN CALCULATE MARKET CAPITALIZATION BY MULTIPLYING THE
CURRENT PRICE OF 1 STOCK OF THAT COMPANY AND THE TOTAL NUMBER
OF STOCKS OF THAT COMPANY.
YOU CAN EITHER PURCHASE STOCKS DIRECTLY OR INVEST IN EQUITY
MUTUAL FUNDS TO GROW YOUR WEALTH IN THE LONG RUN
TYPES OF COMPANIES BASED ON MARKET
CAP
BASED ON MARKET CAPITALIZATION, THERE ARE 3 DIFFERENT TYPES OF STOCKS
Type of stock Market cap
Small-Cap Stocks Up to Rs.500 crore
Mid-Cap Stocks
From Rs.500 crore up to
Rs.7,000 crore
Large-Cap Stocks
From Rs.7,000 crore up
to Rs.20,000 crore
CONCLUSION
TO BUILD WEALTH IN THE LONG RUN, YOU CAN INVEST IN EQUITY MUTUAL
FUNDS LIKE LARGE-CAP FUNDS, SMALL-CAP FUNDS & MID-CAP FUNDS.
IF YOU ARE WELL VERSED WITH THE MARKET, THEN YOU CAN DIRECTLY
PURCHASE STOCKS WITH THE HELP OF A DEMAT ACCOUNT AND A
TRADING ACCOUNT.
THANK YOU

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What is Market Capitalization?

  • 2. INTRODUCTION MARKET CAPITALIZATION IS THE TOTAL MARKET VALUE OF THE OUTSTANDING SHARES OF A COMPANY. IT CAN BE USED AS A GUIDE FOR CHOOSING THE CORRECT SHARES TO INVEST IN. YOU CAN CALCULATE MARKET CAPITALIZATION BY MULTIPLYING THE CURRENT PRICE OF 1 STOCK OF THAT COMPANY AND THE TOTAL NUMBER OF STOCKS OF THAT COMPANY. YOU CAN EITHER PURCHASE STOCKS DIRECTLY OR INVEST IN EQUITY MUTUAL FUNDS TO GROW YOUR WEALTH IN THE LONG RUN
  • 3. TYPES OF COMPANIES BASED ON MARKET CAP BASED ON MARKET CAPITALIZATION, THERE ARE 3 DIFFERENT TYPES OF STOCKS Type of stock Market cap Small-Cap Stocks Up to Rs.500 crore Mid-Cap Stocks From Rs.500 crore up to Rs.7,000 crore Large-Cap Stocks From Rs.7,000 crore up to Rs.20,000 crore
  • 4. CONCLUSION TO BUILD WEALTH IN THE LONG RUN, YOU CAN INVEST IN EQUITY MUTUAL FUNDS LIKE LARGE-CAP FUNDS, SMALL-CAP FUNDS & MID-CAP FUNDS. IF YOU ARE WELL VERSED WITH THE MARKET, THEN YOU CAN DIRECTLY PURCHASE STOCKS WITH THE HELP OF A DEMAT ACCOUNT AND A TRADING ACCOUNT.