3 Important Types of Market Caps

Important 3 Types of Market Caps

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-CapMedium-CapLarge-Cap
Market value$300m- $2b$2b-$10bMore than $10b
Market NatureMost aggressive and risky, volatileRisky but expected potential growthLess risk, steady growth, stable, less volatile
ExamplesDB Corp, Hathway CableXero, EnergizerIntel, 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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