Market Capitalization is defined as the product of Stock Price and number of shares floating in the market. According to investment scenario cap (capitalization) is divided in to 3 parts named as – Mid Cap Stocks, Small Cap Stocks, and Big Cap stocks.
Mid Cap Stocks – $2 billion -$10 billion (Growing companies)
Small Cap Stocks – $300million-$2billion (New Companies)
Big Cap Stocks – $10 billion -$200 billion (Matured Companies)
BSE introduced the new index series called 'BSE Mid-Cap' index and 'BSE Small-Cap' index to track the performance of the companies with relatively small market capitalization that would exclusively represent the mid and small cap companies listed on the Stock Exchange As you have seen above about the market capitalization range of different stocks. According to experts for investment in the market Mid Cap Stocks are more risky than Big cap Stocks and less risky than Small Cap Stocks But there are more chances of growth in the Mid Cap stocks because they have a chance to become a Big Cap Company. And Big Cap companies are saturated in its market. If you are not confident about the growth of a company then you have another option of safe investment called as Mutual Fund. Now a days there are lot of mutual funds specialized in the Mid Cap Stocks and they are giving better returns in the short and long term investment. Mostly Mid Cap Stocks are Surge stocks and rich things are always risky so get ready to invest in your own style and make a historical stats.
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