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Level 9 of 13 · Market capitalization

Market Capitalization: Large Cap, Mid Cap and Small Cap

By the end you will: understand large, mid and small caps.

You learned in Level 3 that market cap = price × shares. In India, SEBI uses market cap to sort every listed company into large, mid or small cap. This sorting decides which mutual funds can buy a stock and tells you a lot about its risk. Use the live index pages on MojoStox to see real members of each group.

Start with 9.1: What is market capitalization? (recap)
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The three size groups

  1. 9.1What is market capitalization? (recap)Market cap is the total value the stock market puts on a company: share price × total shares.
  2. 9.2What is a large-cap company?A large-cap company is one of the 100 largest listed companies in India by market cap.
  3. 9.3What is a mid-cap company?A mid-cap company ranks 101 to 250 by market cap.
  4. 9.4What is a small-cap company?A small-cap company ranks 251 and below by market cap.
  5. 9.5How does SEBI classify companies in India?SEBI’s rule (from 2017) ranks companies by average full market cap over six months. AMFI publishes the list twice a year, in January and…
  6. 9.6Large vs mid vs small cap: the differencesA side-by-side comparison of the three groups.
  7. 9.7What are the risks of investing in small-cap stocks?Small caps carry extra risks beyond normal market risk.
  8. 9.8Why can mid-cap companies grow faster?Mid caps are often in the sweet spot: proven business models, but still small enough to double or triple in size.
  9. 9.9Why are large-cap companies generally more established?Becoming a top-100 company usually takes years of profitable growth, strong brands and market leadership.
  10. 9.10How should investors compare these categories?Choose a mix based on goal, time horizon and how much fall you can stomach, not on which did best last year.