what is small cap and mid cap?
In stock market parlance, companies are divided on the basis of large cap, mid cap and small cap (cap refers to market capitalisation). The value of a share in the market at any point of time is called the price of the share or the market value of a stock. So the share with a face value of Rs 10 (the base price of each share that the company decides on), may be quoted at Rs 55 (higher than the face value), or even Rs 9 (lower than the face value). If you multiply the number of shares in a companyby its market value, the result ismarket capitalisation. For instance, a company with 10 millionshares of a face value Rs 10 and a market value of Rs 30 as on January 21, 2005, will have a market capitalisation of Rs 300 million as on that day. Companies with a market cap of over Rs 1,500 crore (Rs 15billion)are called large cap. Those between Rs 25 crore (Rs 250 million)and Rs 1,500 crore (Rs 15billion) are mid cap and those less than Rs 25 crore (Rs 250 million) are small cap. Why divide comp
