What is Market Cap? Understanding Company Size

Published by StockScore Editorial • Reading time: 4 mins

Market Capitalization (Market Cap) is the total value of a company's shares traded on the stock market. It tells you the total size of the company, rather than just its single share price.

            Market Cap = Current Share Price × Total Outstanding Shares
          

Company Classifications in India

Large-Cap (Top 100 stocks): Giant, stable firms (e.g. Reliance, TCS) with low volatility and secure market positions.
Mid-Cap (101 to 250th stock): Medium-sized companies offering a sweet spot of moderate growth and reasonable stability.
Small-Cap (251st and below): Emerging businesses with massive growth potential but high risk and price volatility.