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Thursday, February 6, 2014

Market Cap Terminologies

There are no hard and fast rules defining the different market capitalization categories and generally only 3 categories- Large Cap, Mid Cap and Small Cap- are commonly used.
But these categories are often not able to give a fair idea of a company's market capitalization so a few more categories like Mega Cap, Micro Cap and Nano Cap are used.

One should not forget that market capitalization keeps on changing with the fluctuation in the current market price of a company's shares and other factors like new share issuance or share buy-back too play their role.
Many large cap companies have become small caps due to a decline in the share price and the vice-versa may happen too.
The companies lying on the threshold may be considered as belonging to upper category.


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