Based on the market capitalization which is often called a market cap, stocks are classified into 3 different categories, they are large-cap, mid-cap, and small-caps. In general, market capitalization refers to the total measure of the estimated valuation of a company. Market cap is found by multiplying the stock price of a company by its total number of outstanding shares. Suppose that A company has 10,000 shares in the market and each share is sold at 50$. Then, the market cap of A company would be 500,000.
Let us analyze each category in detail here:
| Small-Cap | Medium-Cap | Large-Cap | |
| Market value | $300m- $2b | $2b-$10b | More than $10b |
| Market Nature | Most aggressive and risky, volatile | Risky but expected potential growth | Less risk, steady growth, stable, less volatile |
| Examples | DB Corp, Hathway Cable | Xero, Energizer | Intel, Nike |
Of course, among these 3 caps, the most reliable, stable and secure one is large caps whilst 2 other market caps have greater room for growth.
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