Stocks Gurukul

What is Market Capitalisation and how to classify all the listed companies based on it? If you are just beginning in the market and have heard some jargons like Large cap, Mid cap, Small cap and market capitalization (M-cap) and get confused, then the concept of Market Capitalization is very important for you to understand. I will try to keep it short and crisp… :) In this Article, we will understand a very important parameter used to classify all listed companies in any market be it India, USA, China, Japan and so on. That parameter is Market Capitalisation. Let's look at what it means and how it simplifies our understanding of various concepts such as risk associated with a stock. Understanding M-cap is mandatory for you to get what these Mutual Funds, DIIs, FPIs are talking about... Market Capitalization:  Let us take an example. Suppose a company X needs 100 crores capital to start a business and it decides to raise money by issuing shares. Let us assume, it d...

Introduction These days people are getting attracted to equities and other related instruments viz Mutual Funds, ETFs, etc. However, multiple factors are held responsible for under penetration of Indian Stock Markets viz, Various Scams in the past - Harshad Mehta Scam, Ketan Parekh Scam  Perception of equating SM with Gambling Low Risk-taking culture in our nation Lack of financial knowledge base Fear of Losing your hard-earned money (FOLO) Volatile nature of Returns Fixed Income schemes being more popular with guaranteed returns And much more…. In India, only 2.5% of the population has exposure to the financial markets ( Source: FE ) whereas the percentage is as high as 90 in developed economies. Here in this article, we will look at how to get started in equity and how to buy your first stock. However, what to buy and when to buy, what all research is to be carried out will be discussed in a separate series based on your queries and my general understanding o...