Mid cap and small cap stocks
- Thread starter Ashugar
- Start date
All the stocks are categorised according to the Size of the Market Capitalisation.
If you don't know Market Capitalisation (called market cap), it is the price of the shares multiplied to the number of shares trading (i.e free float, if you don't know what free float is dont' worry , i just entered to be technically correct, so that few people will not unnecessarily point out and take this thread to different domain)
In simple language, large companies are large caps , like Reliance, Infosys, Bharti Airtel, SBI, TCS, tatas, and other Reliances,,, (all the companies in Sensex/Nifty),
After that there are medium sized companies called Mid caps, say Allahabad bank, andhrabank, andhrasugar, etc..
then there are very small companies, total market cap is small and also the total traded volume (on daily basis) is very small (and thus illiliquid) are small caps. It is always riskier to invest in small caps , since they can have large movements in a single day (since very small amount (in few Crores) is sufficient to hit the circuit for them) (but as the adage goes, Risk is where there is Return), but i would recommend you to focus on large caps till you understand the risks involved..
Merry Christmas
If you don't know Market Capitalisation (called market cap), it is the price of the shares multiplied to the number of shares trading (i.e free float, if you don't know what free float is dont' worry , i just entered to be technically correct, so that few people will not unnecessarily point out and take this thread to different domain)
In simple language, large companies are large caps , like Reliance, Infosys, Bharti Airtel, SBI, TCS, tatas, and other Reliances,,, (all the companies in Sensex/Nifty),
After that there are medium sized companies called Mid caps, say Allahabad bank, andhrabank, andhrasugar, etc..
then there are very small companies, total market cap is small and also the total traded volume (on daily basis) is very small (and thus illiliquid) are small caps. It is always riskier to invest in small caps , since they can have large movements in a single day (since very small amount (in few Crores) is sufficient to hit the circuit for them) (but as the adage goes, Risk is where there is Return), but i would recommend you to focus on large caps till you understand the risks involved..
Merry Christmas
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