Large caps vs Mid caps vs Small caps

What's the difference between large-cap, small-cap, and mid-cap stocks?

Ajay is just starting out in the stock market. He wants to learn the differences between small-cap, large-cap and mid-cap.

Ashish, his friend , explained that market capitalization is the company's total market value.

Its current share price and total outstanding stocks. For example, 50 crore rupees is the market capitalization for crystal art industries. Its shares trade at 50 rupees each and there are one million shares outstanding.

There is no standard market cap, but companies with a total market capitalization above 10000 crore rupees will be considered large caps. Companies with smaller market capitalizations below 10000 crore rupees will be considered small and mid caps.

Large caps are stocks that include large, well-established businesses with stable business models and are considered safe investments. These stocks can provide moderate but safe returns. Mid-cap companies have the potential for large cap growth. Companies with small cap usually include mature companies, startups, and companies in a smaller industry. These companies could be huge gainers, but it is important to research them thoroughly. Ajay is now able to distinguish between small, medium and large caps.