How to differentiate between small caps, mid caps, large caps?

POSTED BY Ramnath ON September 25, 2010 4:41 am COMMENTS (5)

How to differentiate between small caps, mid caps, large caps? How can I classify a stock? Is there any labels that are applied by brokers/nse?

5 replies on this article “How to differentiate between small caps, mid caps, large caps?”

  1. Ramnath says:

    @Ravi @Vikrant: thanx for your insights. Do we have a list of popular large, small, mid cap stocks at jagoinvestor?

    1. Vikrant Pradeep Sahu says:

      Thanks Ravi. Further to ur Query.
      I dont think so. But these are availble on many websites. It is observed that large cap funds are popular at any moment of time but small & mid cap are popular for specific period. So never go through cap (i.e. Market capitalisation’ ). Select ur stock as per balance sheet and company records/performance in past years. Because price of stocks can manipulated by some people and those stocks can be popularised over night. Small investor like us get trapped into this manipulation.

  2. Vikrant Pradeep Sahu says:

    There are three main classification to stocks:
    1. Large Cap Stocks
    2. Mid Cap Stocks
    3. Small Cap Stocks
    Here, the term ‘cap’ refers to the ‘Market capitalisation’ of the stock.

    Market capitalization= Current Stock Price X No. of Shares

    Market capitalization of Rs.200 bn- Rs.3500 bn could be large cap, between 50 bn to 200 bn could be Mid cap and less than 50 bn crore could be low cap.
    Examples:
    Large cap: Infosys, L&T, Reliance industries, etc.
    Mid cap: Tatachem, RNRL, etc
    Small cap: Shriram transaport, praj ind, etc

    Large Cap Stocks ———-(Safe and good returns in long time)
    Mid Cap Stocks ——–(Less risk and high returns in2-3 yrsime)
    Small Cap Stocks———(More risky and very high returns/losses)

  3. They are differentiated using market capitalization of that stock. Market capitalization is number of total shares mulitiplied by current share price. Market capitalization of more than 40K crore could be large cap, between 10K to 40K crore could be Mid cap and less than 10K crore could be low cap. However these ranges are not constants and would be changing based on the economy and market.

  4. They are differentiated using market capitalization of that stock. Market capitalization is number of total shares mulitiplied by current share price. Market capitalization of more than 40K crore could be large cap, between 10K to 40K crore could be Mid cap and less than 2K crore could be low cap. However these ranges are not constants and would be changing based on the economy and market.

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