What are Small cap Stocks?

Small-cap stocks typically refer to companies with a relatively low market capitalisation ranging between INR ₹500 crore to INR ₹2,000 crore. In terms of total market value, these companies are typically classified as lower than large-cap and mid-cap companies.

According to the definition, small-cap companies in India may have a market capitalisation between INR 500 crore and INR 2000 crore (approximately). It is essential to note that these limits are subject to change over time and may vary based on market conditions and other criteria. The abbreviation “cap” in the context of the word “small-cap” denotes “capitalisation.” The complete word means “market capitalisation.”

Small-cap Stocks | Meaning, Features and Advantages

Similar Reads

What are Small cap Stocks?

Small-cap stocks typically refer to companies with a relatively low market capitalisation ranging between INR ₹500 crore to INR ₹2,000 crore. In terms of total market value, these companies are typically classified as lower than large-cap and mid-cap companies....

Features of Small-cap Stocks

1. Market Capitalisation: Small-cap securities represent companies with smaller market capitalizations. The total valuation of these companies is less than that of large-cap and even mid-cap companies....

Why Invest in Small Cap Stocks?

Investing in small-cap equities can provide investors with potential returns and unique possibilities. However, it is vital to recognize that investing in small-cap stocks carries greater risk than investing in securities of larger, more established companies. Here are some factors why investors might choose to invest in small-cap stocks:...

Advantages of Small-cap Stocks

Investing in small-cap stocks can provide investors with a number of benefits, but it is essential to remember that these benefits come with associated risks. The following are potential benefits of investing in small-cap stocks:...

Associated Risks with Small-cap Stocks

Investing in small-cap equities can offer potential returns, but carries a greater degree of risk than investing in larger, more established companies. Before thinking about an investment in small-cap stocks, it is essential to be aware of the following risks:...

Contact Us