MARKET CAP

Market cap is the most important part of a company. Market cap shows company value and company growth. This refers to the total value of all a company's shares of stock. Market cap measures what a company is worth on the open market. as well as the market's perception of its future prospects because it reflects what investors are willing to pay for its stock Market cap is show how much the company big and finds the company's stability.

The formula of market cap - current share price * total number of shares

For example- XYZ company current share price= 2000$

XYZ Total number of shares = 1000000

Market cap= 2000$* 1000000= 2000000000$ answer

It means XYZ company total value is 2000000000$

Market cap is good analyzing ratio in the stocks market. They are three types of market cap.

Large, mid and small

Larg cap

Large-cap is used only for large companies around 20 crores to 100 crores this company is very big and good company. This company's shares price grows slowly but this company is not risky. These companies best for long-term investment.

Mid-cap

These companies not very large and not very small companies. These companies are good for trading and investing this company’s market cap around 5crore to 20 crores. These companies grow fast and medium risk these companies good for bingers.

Small-cap

This type of company is small and its market cap is around the 5crore. These types of companies are very risky and growable companies these companies give high return these companies good for intraday and swing trading.