What is Market Capitalization?

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What is market capitalization
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introduction

• Market capitalization is the total market value
  of the outstanding shares of a company. It can be
  used as a guide for choosing the correct shares
  to invest in.
• You can calculate market capitalization by
  multiplying the current price of 1 stock of that
  company and the total number of stocks of that
  company.
• You can either purchase stocks directly or invest
  in equity mutual funds to grow your wealth in the
  long run

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Types of companies based on market cap

• Based on market capitalization, there are 3
  different types of stocks

Type of stock Market cap
Small-Cap Stocks Up to Rs.500 crore
Mid-Cap Stocks From Rs.500 crore up to Rs.7,000 crore
Large-Cap Stocks From Rs.7,000 crore up to Rs.20,000 crore
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Conclusion

• To build wealth in the long run, you can invest
  in equity mutual funds like large-cap funds,
  small-cap funds mid-cap funds.
• If you are well versed with the market, then you
  can directly purchase stocks with the help of a
  demat account and a trading account.

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