What is market capitalization in stock exchange?

Question

What is market capitalization in stock exchange?

nomi king 5 months 1 Answer 97 views

Answer ( 1 )

  1. We can say that it is the product of current price and outstanding shares of a company in the market .On basis market capitalization , stocks are divided into three groups -small cap,mid cap and large cap.One of my friends one day asked me that share of Indusind bank is almost double to ICICI bank , it means it is a better stock .Then I told him that “No because market cap of Indusind bank is very much lower than than that od ICICI bank . So we have to see the market cap rather than the price of a stock to have rough idea of the valuation

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