Large Cap vs Mid Cap vs Small Cap
Hi Friends If you are thinking to start your investing journey or are just a new bee who is interested to invest in the mutual funds or stock market, many times you hear jargon like large-cap mutual funds, mid-cap mutual funds, large-cap stocks, small-cap stocks, etc. To understand this jargon, you need to understand the basics of the stock market. Jargons like large-cap, mid-cap, or small-cap are derived from market capitalizations. Before understanding different caps, you need to first understand what marker capitalization stands for in the stock market. What is market capitalization? Market capitalization is defined as the market value of the outstanding shares of a company. In simple words, it is the market value of total shares held by all the investors in the company such as promoters, FII, DII, retail investors, etc. Market capitalization is calculated with a simple formula Market Capitalization = Num...