{"id":9674,"date":"2022-08-08T09:58:45","date_gmt":"2022-08-08T04:28:45","guid":{"rendered":"https:\/\/www.tickertape.in\/blog\/?p=9674"},"modified":"2022-12-12T17:59:10","modified_gmt":"2022-12-12T12:29:10","slug":"market-capitalisation-the-difference-between-small-cap-mid-cap-and-large-cap","status":"publish","type":"post","link":"https:\/\/www.tickertape.in\/blog\/market-capitalisation-the-difference-between-small-cap-mid-cap-and-large-cap\/","title":{"rendered":"Market Capitalisation: The Difference Between Small-Cap, Mid-Cap and Large-Cap"},"content":{"rendered":"\n<p>Everyone is aware of investment options like <a href=\"https:\/\/www.tickertape.in\/screener\/mutual-fund?utm_source=blog&amp;utm_medium=article\" target=\"_blank\" rel=\"noreferrer noopener\">mutual funds<\/a> and stocks. For a first-time investor, it is important to be aware of the investment concepts as they can help you make better investment decisions. <a href=\"https:\/\/www.tickertape.in\/blog\/market-capitalization\/\">Market capitalisation<\/a> is one such key aspect an investor must understand before investing. The companies in the <a href=\"https:\/\/www.tickertape.in\/blog\/how-to-invest-in-shares\/\">stock market<\/a> are classified based on the <a href=\"https:\/\/www.tickertape.in\/blog\/market-capitalisation-meaning\/\">market capitalisation<\/a> as small-cap, mid-cap and large-cap. In this article, let\u2019s learn about market capitalisation and the difference between small-cap, mid-cap and large-cap.&nbsp;&nbsp;&nbsp;&nbsp;<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_66_1 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.tickertape.in\/blog\/market-capitalisation-the-difference-between-small-cap-mid-cap-and-large-cap\/#What-is-market-capitalisation\" title=\"What is market capitalisation?&nbsp;\">What is market capitalisation?&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.tickertape.in\/blog\/market-capitalisation-the-difference-between-small-cap-mid-cap-and-large-cap\/#Types-of-market-capitalisation\" title=\"Types of market capitalisation\">Types of market capitalisation<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.tickertape.in\/blog\/market-capitalisation-the-difference-between-small-cap-mid-cap-and-large-cap\/#1-Small-cap\" title=\"1. Small-cap\">1. Small-cap<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.tickertape.in\/blog\/market-capitalisation-the-difference-between-small-cap-mid-cap-and-large-cap\/#2-Mid-cap\" title=\"2. Mid-cap&nbsp;\">2. Mid-cap&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.tickertape.in\/blog\/market-capitalisation-the-difference-between-small-cap-mid-cap-and-large-cap\/#3-Large-cap\" title=\"3. Large-cap&nbsp;\">3. Large-cap&nbsp;<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.tickertape.in\/blog\/market-capitalisation-the-difference-between-small-cap-mid-cap-and-large-cap\/#Difference-between-small-cap-mid-cap-and-large-cap\" title=\"Difference between small-cap, mid-cap and large-cap\">Difference between small-cap, mid-cap and large-cap<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.tickertape.in\/blog\/market-capitalisation-the-difference-between-small-cap-mid-cap-and-large-cap\/#Importance-of-market-capitalisation\" title=\"Importance of market capitalisation&nbsp;\">Importance of market capitalisation&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.tickertape.in\/blog\/market-capitalisation-the-difference-between-small-cap-mid-cap-and-large-cap\/#FAQs\" title=\"FAQs&nbsp;\">FAQs&nbsp;<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.tickertape.in\/blog\/market-capitalisation-the-difference-between-small-cap-mid-cap-and-large-cap\/#1-What-are-large-cap-mid-cap-and-small-cap\" title=\"1. What are large-cap, mid-cap and small-cap?\">1. What are large-cap, mid-cap and small-cap?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.tickertape.in\/blog\/market-capitalisation-the-difference-between-small-cap-mid-cap-and-large-cap\/#2-What-is-the-formula-to-calculate-the-market-cap-of-a-company\" title=\"2. What is the formula to calculate the market cap of a company?\">2. What is the formula to calculate the market cap of a company?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/www.tickertape.in\/blog\/market-capitalisation-the-difference-between-small-cap-mid-cap-and-large-cap\/#3-How-to-find-the-small-cap-stocks\" title=\"3. How to find the small-cap stocks?\">3. How to find the small-cap stocks?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/www.tickertape.in\/blog\/market-capitalisation-the-difference-between-small-cap-mid-cap-and-large-cap\/#4-How-to-find-the-best-small-cap-stocks\" title=\"4. How to find the best small-cap stocks?\u00a0\">4. How to find the best small-cap stocks?\u00a0<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What-is-market-capitalisation\"><\/span><strong>What is market capitalisation?&nbsp;<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Market capitalisation is also known as market cap. It describes the total <a href=\"https:\/\/www.tickertape.in\/blog\/market-value\/\">market value<\/a> of the total shares held by <a href=\"https:\/\/www.tickertape.in\/blog\/shareholders\/\">shareholders<\/a> of a company.&nbsp;<\/p>\n\n\n\n<p>Let\u2019s take an example to understand the market cap better.&nbsp;<\/p>\n\n\n\n<p>XYZ Company has 10,000 outstanding shares in the market, and each share of the company is Rs. 50. The market capitalisation of a company is calculated with the following formula.&nbsp;<\/p>\n\n\n\n<p>Market cap = outstanding shares x price per share<br>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; = 10,000 x 50 = 5,00,000<\/p>\n\n\n\n<p>Therefore, the market capitalisation of XYZ Company is Rs. 5,00,000.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Types-of-market-capitalisation\"><\/span><strong>Types of market capitalisation<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>In 2017, the <a href=\"https:\/\/www.tickertape.in\/blog\/securities-and-exchange-board-of-india-functions-powers-and-regulations-of-sebi\/\" data-type=\"post\" data-id=\"3061\">Securities and Exchange Board of India (SEBI)<\/a> established a few regulations to categorise companies according to their market cap. There are three market capitalisation types:&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"1-Small-cap\"><\/span>1. <strong>Small-cap<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Companies with a market capitalisation of less than Rs. 5,000 cr. are small-cap companies. The rank of these companies starts from 251 on the stock exchanges. Small-cap companies don\u2019t have a long track record. These could be start-ups or businesses in the early stages of development.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"2-Mid-cap\"><\/span>2. <strong>Mid-cap&nbsp;<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Companies with a market capitalisation of more than Rs. 5,000 cr. and less than Rs. 20,000 cr. are known as mid-cap companies. On the stock exchanges, these companies are ranked from 101 to 250. In the long-run mid-cap companies have the ability to become large-cap companies.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"3-Large-cap\"><\/span>3. <strong>Large-cap&nbsp;<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Companies with a market capitalisation of more than Rs. 20,000 cr. are known as large-cap companies. On the stock exchanges, these companies are ranked from 1 to 100. These are well-established companies with a prominent market share. The large-cap companies are the ones which have been in the market for a longer time. These companies are actively traded in the market.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Difference-between-small-cap-mid-cap-and-large-cap\"><\/span><strong>Difference between small-cap, mid-cap and large-cap<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Here\u2019s small-cap vs mid-cap vs large-cap as per the important investment aspects&nbsp;<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>Aspects<\/strong><\/td><td><strong>Small-cap<\/strong><\/td><td><strong>Mid-cap<\/strong><\/td><td><strong>Large-cap<\/strong><\/td><\/tr><tr><td>Market capitalisation<\/td><td>Less than Rs. 5,000 cr.<\/td><td>Rs. 5,000 cr. to Rs. 20,000 cr.<\/td><td>More than Rs. 20,000 cr.&nbsp;<\/td><\/tr><tr><td>Liquidity<\/td><td>Low liquidity compared to mid-cap and large-cap<\/td><td>Moderate liquidity as the demand is moderate<\/td><td>High liquidity as there is high demand<\/td><\/tr><tr><td>Risks<\/td><td>The risk exposure can be high as the companies are not well-established&nbsp;&nbsp;<\/td><td>The risk exposure can be a bit less than the small-cap but higher than the large-cap<\/td><td>Being well-established companies, the risk profile is comparatively low<\/td><\/tr><tr><td><a href=\"https:\/\/www.tickertape.in\/blog\/volatility\/\">Volatility<\/a><\/td><td>More volatile<\/td><td>Moderate volatility<\/td><td>Less volatile<\/td><\/tr><tr><td>Who should <a href=\"https:\/\/www.tickertape.in\/blog\/why-should-you-prioritise-investing\/\">invest<\/a>?<\/td><td>High-risk tolerant investors&nbsp;<\/td><td>Moderate risk-tolerant investors with long-term investment plans<\/td><td>Conservative investors looking for long-term investment plans<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Importance-of-market-capitalisation\"><\/span><strong>Importance of market capitalisation&nbsp;<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>In your investment portfolio, market caps play a crucial role. Usually, the stock market is affected by several external factors. When small-cap or <a href=\"https:\/\/www.tickertape.in\/blog\/mid-cap-stock\/\">mid-cap stocks<\/a> are doing well, the large-cap might fall or vice versa. To avoid market fluctuations, it is ideal for diversifying your portfolio by investing across market caps. You can use <a href=\"https:\/\/www.tickertape.in\/screener\/equity?utm_source=blog&amp;utm_medium=article\" target=\"_blank\" rel=\"noreferrer noopener\">Tickertape Stock Screener<\/a> to analyse the performance of each stock according to its market capitalisation.&nbsp;<\/p>\n\n\n\n<p>Overall, ensure that you consider your investment goal, time and risk appetite before investing in any stock.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"FAQs\"><\/span><strong>FAQs&nbsp;<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n<div id=\"rank-math-faq\" class=\"rank-math-block\">\n<div class=\"rank-math-list \">\n<div id=\"faq-question-1659530625955\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"1-What-are-large-cap-mid-cap-and-small-cap\"><\/span>1. <strong>What are large-cap, mid-cap and small-cap?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>Stocks in the stock market are categorised according to their market capitalisation. The three market cap categories are large-cap, mid-cap and small-cap.\u00a0<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1659530630434\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"2-What-is-the-formula-to-calculate-the-market-cap-of-a-company\"><\/span>2. <strong>What is the formula to calculate the market cap of a company?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>The formula to calculate a company\u2019s market cap is market cap = outstanding shares x price per share.\u00a0<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1659530638101\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"3-How-to-find-the-small-cap-stocks\"><\/span>3. <strong>How to find the small-cap stocks?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>You can use Tickertape <a href=\"https:\/\/www.tickertape.in\/blog\/tickertape-stock-screener-to-discover-largecap-stocks\/\">Stock Screener<\/a> to get the list of small small-cap stocks.\u00a0<br \/>&#8211; Log in to <a href=\"https:\/\/www.tickertape.in?utm_source=blog&amp;utm_medium=article\" target=\"_blank\" rel=\"noreferrer noopener\">Tickertape<\/a>\u00a0<br \/>&#8211; Open the <a href=\"https:\/\/www.tickertape.in\/screener\/equity?utm_source=blog&amp;utm_medium=article\" target=\"_blank\" rel=\"noreferrer noopener\">Stock Screener<\/a> page\u00a0<br \/>&#8211; Select \u201cSmallcap\u201d under \u201cMarket Cap\u201d\u00a0<br \/>&#8211; Add more <a href=\"https:\/\/www.tickertape.in\/blog\/14-new-filters-on-tickertape-stock-screener\/\">filters<\/a> according to your preference<br \/>&#8211; You\u2019ll get a list of small-cap stocks sorted as per the market cap\u00a0<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1659530651318\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"4-How-to-find-the-best-small-cap-stocks\"><\/span>4. <strong>How to find the best small-cap stocks?<\/strong>\u00a0<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>Once you get the list of small-cap stocks, you can filter the best ones based on important parameters. Choose a company with good fundamentals such as good margins, consistent profits, good <a href=\"https:\/\/www.tickertape.in\/blog\/what-is-equity\/\">equity<\/a> management, low debts, sound management etc.<\/p>\n\n<\/div>\n<\/div>\n<\/div>\n<\/div>","protected":false},"excerpt":{"rendered":"<p>Market capitalisation is one such key aspect an investor must understand before investing. The companies in the stock market are classified based on the market capitalisation as small-cap, mid-cap and large-cap. In this article, let\u2019s learn about market capitalisation and the difference between small-cap, mid-cap and large-cap.\u00a0\u00a0\u00a0<\/p>\n","protected":false},"author":90,"featured_media":9722,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"_lmt_disableupdate":"no","_lmt_disable":"no","footnotes":""},"categories":[1738],"tags":[],"acf":[],"modified_by":null,"jetpack_featured_media_url":"https:\/\/www.tickertape.in\/blog\/wp-content\/uploads\/2022\/08\/TT-4-Aug-Small-Big-Large-Cap-scaled.jpg?wsr","_links":{"self":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts\/9674"}],"collection":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/users\/90"}],"replies":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/comments?post=9674"}],"version-history":[{"count":6,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts\/9674\/revisions"}],"predecessor-version":[{"id":9709,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/posts\/9674\/revisions\/9709"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/media\/9722"}],"wp:attachment":[{"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/media?parent=9674"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/categories?post=9674"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.tickertape.in\/blog\/wp-json\/wp\/v2\/tags?post=9674"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}