{"id":630,"date":"2024-12-10T10:00:00","date_gmt":"2024-12-10T04:30:00","guid":{"rendered":"https:\/\/stockmarketsimplified.com\/blog\/?post_type=glossary&#038;p=630"},"modified":"2026-04-27T19:00:46","modified_gmt":"2026-04-27T13:30:46","slug":"market-capitalisation","status":"publish","type":"post","link":"https:\/\/stockmarketsimplified.com\/glossary\/market-capitalisation\/","title":{"rendered":"Market Capitalisation (Market Cap)"},"content":{"rendered":"\r\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"597\" class=\"wp-image-631\" src=\"https:\/\/stockmarketsimplified.com\/blog\/wp-content\/uploads\/2024\/12\/market-capital-1024x597.jpg\" alt=\"Market Capitalisation\" srcset=\"https:\/\/stockmarketsimplified.com\/glossary\/wp-content\/uploads\/2024\/12\/market-capital-1024x597.jpg 1024w, https:\/\/stockmarketsimplified.com\/glossary\/wp-content\/uploads\/2024\/12\/market-capital-300x175.jpg 300w, https:\/\/stockmarketsimplified.com\/glossary\/wp-content\/uploads\/2024\/12\/market-capital-768x448.jpg 768w, https:\/\/stockmarketsimplified.com\/glossary\/wp-content\/uploads\/2024\/12\/market-capital.jpg 1200w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\r\n\r\n\r\n\r\n<p>Market Cap is a common term in the stock market. It is a very easy way to figure out the total value of a company. In order to calculate it, simply multiply the company\u2019s stock price by the total number of existing shares in the market.<\/p>\r\n\r\n\r\n\r\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/stockmarketsimplified.com\/glossary\/market-capitalisation\/#Key_Formula\" >Key Formula<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/stockmarketsimplified.com\/glossary\/market-capitalisation\/#What_It_Means\" >What It Means<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/stockmarketsimplified.com\/glossary\/market-capitalisation\/#Types_of_Market_Capitalization\" >Types of Market Capitalization<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/stockmarketsimplified.com\/glossary\/market-capitalisation\/#Why_It_Matters\" >Why It Matters<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/stockmarketsimplified.com\/glossary\/market-capitalisation\/#Examples_of_Market_Cap_Categories\" >Examples of Market Cap Categories<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Key_Formula\"><\/span>Key Formula<span class=\"ez-toc-section-end\"><\/span><\/h2>\r\n\r\n\r\n\r\n<p><strong>Market Cap = Stock Price \u00d7 Total Shares Outstanding<\/strong><\/p>\r\n\r\n\r\n\r\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_It_Means\"><\/span>What It Means<span class=\"ez-toc-section-end\"><\/span><\/h2>\r\n\r\n\r\n\r\n<p>Market cap of a company is an instant way to interpret how big a company is and its overall value in the stock market. It shows how much investors think the company is worth based on its current stock price.<\/p>\r\n\r\n\r\n\r\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Types_of_Market_Capitalization\"><\/span>Types of Market Capitalization<span class=\"ez-toc-section-end\"><\/span><\/h2>\r\n\r\n\r\n\r\n<p>Mainly, when it comes to size, market caps are divided into three key types;<\/p>\r\n\r\n\r\n\r\n<ul class=\"wp-block-list\">\r\n<li><strong>Large-Cap<\/strong>: Companies with a market cap of \u20b975,000 crore or more. They are typically big and stable.<\/li>\r\n\r\n\r\n\r\n<li><strong>Mid-Cap:<\/strong> Enterprises between \u20b95,000 crore and \u20b975,000 crore. High growth potential yet comparatively more risk.<\/li>\r\n\r\n\r\n\r\n<li><strong>Small-Cap:<\/strong> Firms with a market cap of under \u20b95,000 crore, often new and riskier, but with higher growth chances.<\/li>\r\n<\/ul>\r\n\r\n\r\n\r\n<p><strong>Also Read<\/strong>: <a href=\"https:\/\/stockmarketsimplified.com\/blog\/share-market-timing-india-nse-bse-opening-hours\/\" data-type=\"link\" data-id=\"https:\/\/stockmarketsimplified.com\/blog\/share-market-timing-india-nse-bse-opening-hours\/\">Share Market Timing in India: NSE &amp; BSE Opening Time<\/a><\/p>\r\n\r\n\r\n\r\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Why_It_Matters\"><\/span>Why It Matters<span class=\"ez-toc-section-end\"><\/span><\/h2>\r\n\r\n\r\n\r\n<p>Market cap helps investors size up a company and decide whether it matches their investment goals. Large-cap companies are usually seen as more safer choices. On the other hand, small-cap companies can grow faster but involve higher risks.<\/p>\r\n\r\n\r\n\r\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Examples_of_Market_Cap_Categories\"><\/span>Examples of Market Cap Categories<span class=\"ez-toc-section-end\"><\/span><\/h2>\r\n\r\n\r\n\r\n<ul class=\"wp-block-list\">\r\n<li><strong>Large-Cap<\/strong>: HDFC Bank, Bharti Airtel, SBI, ITC<\/li>\r\n\r\n\r\n\r\n<li><strong>Mid-Cap:<\/strong> Zomato, Marico<\/li>\r\n<\/ul>\r\n\r\n\r\n\r\n<p><strong>Small-Cap<\/strong>: Start-ups or smaller tech companies listed in India<\/p>\r\n","protected":false},"excerpt":{"rendered":"<p>Market Cap is a common term in the stock market. It is a very easy way to figure out the total value of a company. In order to calculate it, simply multiply the company\u2019s stock price by the total number of existing shares in the market. Key Formula Market Cap = Stock Price \u00d7 Total&hellip; <a class=\"more-link\" href=\"https:\/\/stockmarketsimplified.com\/glossary\/market-capitalisation\/\">Continue reading <span class=\"screen-reader-text\">Market Capitalisation (Market Cap)<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":632,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-630","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized","entry"],"_links":{"self":[{"href":"https:\/\/stockmarketsimplified.com\/glossary\/wp-json\/wp\/v2\/posts\/630","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/stockmarketsimplified.com\/glossary\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/stockmarketsimplified.com\/glossary\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/stockmarketsimplified.com\/glossary\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/stockmarketsimplified.com\/glossary\/wp-json\/wp\/v2\/comments?post=630"}],"version-history":[{"count":1,"href":"https:\/\/stockmarketsimplified.com\/glossary\/wp-json\/wp\/v2\/posts\/630\/revisions"}],"predecessor-version":[{"id":3757,"href":"https:\/\/stockmarketsimplified.com\/glossary\/wp-json\/wp\/v2\/posts\/630\/revisions\/3757"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/stockmarketsimplified.com\/glossary\/wp-json\/wp\/v2\/media\/632"}],"wp:attachment":[{"href":"https:\/\/stockmarketsimplified.com\/glossary\/wp-json\/wp\/v2\/media?parent=630"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/stockmarketsimplified.com\/glossary\/wp-json\/wp\/v2\/categories?post=630"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/stockmarketsimplified.com\/glossary\/wp-json\/wp\/v2\/tags?post=630"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}