Basics of Market Capitalization in Indian Stock Market
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Market capitalization in Indian stock market--> What is Large cap, midcap, smallcap companies? What are blue chip stocks? Read more here: http://www.tradebrains.in/market-capitalization-in-indian-stock-market/
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Basics of Market Capitalization in Indian Stock Market
- 1. TRADE BRAINS BASICS OF MARKET CAPITALIZATION IN INDIAN STOCK MARKET. www.tradebrains.in
- 2. TRADE BRAINS Classification of companies in Indian stock market: • Large Cap • Mid Cap • Small Cap www.tradebrains.in
- 3. TRADE BRAINS These companies are classified based on their market capitalization, www.tradebrains.in
- 4. TRADE BRAINS Market capitalization shows the size of the company and its aggregate value. IT refers the total market value of a company’s outstanding shares. Market capitalisation = (outstanding shares)*(current market price of one share) www.tradebrains.in
- 5. TRADE BRAINS How companies are classified using Market Capitalization in Indian stock market? no hard and fast way rule (criteria) www.tradebrains.in
- 6. TRADE BRAINS Why there in no fixed market capitalization range for classifying companies? Bombay stock exchange (BSE) uses the 80-15-5 rule to classify the companies in large cap, mid cap or small cap. www.tradebrains.in
- 7. TRADE BRAINS The largest market capitalization which covers • up to 80% of * —> large cap company. • 80-95% of * —> mid cap company. • 95-100% OF *—> small cap company. *= total market cap www.tradebrains.in
- 8. TRADE BRAINS Large Cap companies: • big and well-established company • leaders in their sector • huge market presence • very large capitalization to survive in adverse economic conditions. Many of the large cap companies are listed in Sensex 30 and Nifty 50. www.tradebrains.in
- 10. TRADE BRAINS Mid Cap companies: • relatively more risky than large cap yet less risky than small cap companies. • Potential to become a large cap in few years. • enough finance to survive harsh economic conditions. www.tradebrains.in
- 12. TRADE BRAINS Small Cap companies: • Small market capitalization • includes the start-ups or companies in the early stage of development. • potentially big gainers as they are yet to be discovered within the sector. • high risk level www.tradebrains.in
- 15. TRADE BRAINS What are Blue Chips stocks? • nationally recognized, • well established • financially sound companies. • consistent growth and returns in the past many years. High market capitalization and leaders in their market. www.tradebrains.in
- 16. TRADE BRAINS Characteristics: stability, consistent returns, good financial backup, less volatility and high liquidity. very less volatile & comparatively safe to invest www.tradebrains.in
- 17. TRADE BRAINS Top 10 Blue Chips stocks in Indian stock market. www.tradebrains.in
- 18. TRADE BRAINS Summary: Large, mid & small cap www.tradebrains.in
- 19. TRADE BRAINS Conclusion: selection totally on your preference. Low risk, steady returns —> large cap companies high profits and fast returns —>small or mid cap companies. www.tradebrains.in
- 20. TRADE BRAINS Thanks for watching… Read more here: www.tradebrains.in