What is Market Capitalization?

Market Capitalization refers to the market value of a company. It is dependent upon price of shares and the number of outstanding shares.

Simply put Market Cap= Share price* Number of outstanding shares. There are primarily 3 categories:

Large Cap – Companies with market cap > Rs 20,000 crore; For example TCS, Reliance industries, etc.
Mid Cap - Companies with market cap b/w Rs5000- Rs 20,000 crore; For example TVS motors, Bank of India, etc
Small/Micro Cap- Companies with market cap <Rs 5000 cr; For example Spicejet Ltd, Welspun, etc

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