Stock Market Basics

Market Capitalization

A company's total market value — current share price multiplied by the total number of outstanding shares.

Market capitalization (“market cap”) is the total market value of a company’s outstanding shares, calculated as:

Market Capitalization = Current Market Price × Total Shares Outstanding

Size Classification in India

Large-cap: roughly the top 100 companies by market cap
Mid-cap: roughly the 101st–250th companies
Small-cap: 251st onward

This is a size classification, not a safety rating — a large-cap company can still underperform, and a small-cap company can outperform.

See the full explanation with examples in What Are Stocks? Ownership, Price, and Value Explained.