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Market basics
Also called: Market cap, Mcap, Market capitalization
Market capitalisation (market cap) is the share price multiplied by the number of shares a company has issued. It is what the market values the whole company at today, usually quoted in ₹ crore in India.
Market cap = Share price × Total shares outstanding
A company has 50 crore shares trading at ₹1,000 each. Its market cap is ₹50,000 crore.
SEBI groups listed companies by market cap for mutual-fund rules: the top 100 are large caps, the next 150 are mid caps, and the rest are small caps. AMFI publishes the list twice a year.
It is the honest measure of a company's size — the share price alone says nothing, because it depends on how many shares exist.
Larger companies tend to move less violently and are easier to buy and sell in quantity. Smaller ones can grow faster and fall harder.
Market capitalisation (market cap) is the share price multiplied by the number of shares a company has issued. It is what the market values the whole company at today, usually quoted in ₹ crore in India.
Market cap = Share price × Total shares outstanding. A company has 50 crore shares trading at ₹1,000 each. Its market cap is ₹50,000 crore.