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 by its total number of outstanding shares. Suppose that A company with 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:
|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.
Importantly, we offer a one-stop-shop experience in which you can search for and trade halal stocks on the same platform. Insha’Allah, we will be launching our trading functionality soon. Unlike other traditional brokerage firms, we only engage in Shariah-compliant stocks.
To read more about Islamic Finance related topics, please click here and visit our academy.
Besides, feel free to sign up for our free stock screening services at musaffa.com.