Fundamentals & valuation
What is Large cap, mid cap and small cap?
Also called: Large cap, Mid cap, Small cap
Hinglish mein padhein: Large cap, mid cap aur small cap kya hote hain?
SEBI groups listed companies by market cap rank: the top 100 are large caps, 101–250 are mid caps and 251 onwards are small caps.
Large caps are usually established, liquid businesses. Mid and small caps can grow faster but fall harder in corrections and can be less liquid.
Mutual fund categories such as large-cap and mid-cap funds must invest mainly in stocks from these lists.
Related terms
- Market capitalisationMarket capitalisation is a company's total market value: share price multiplied by the number of shares outstanding.
- LiquidityLiquidity is how easily you can buy or sell a stock quickly without moving its price much.
- Mutual fundA mutual fund pools money from many investors and invests it in stocks, bonds or both, managed by a SEBI-registered asset management company.