Large Cap Stocks – Definition & Examples

We use the words Large cap, Midcap & Small cap stocks everyday in our life but many few people know the exact meaning of these words. So let us discuss today what it means by Large cap stocks?

First of all let us understand what it means by Market Capitalization?

Market Capitalization means share price of any Listed Company multiplied by total number of outstanding shares of that company. Say for Example, if Company ABC has 10,000 shares and the share price is Rs.100 per share than the market capitalization of Company ABC is 10,000 multiplied by 100 = Rs.10,00,000 (10 Lakh).

Now here is the definitions of Large Cap, Mid cap & Small cap stocks -

• Large-cap: $10 billion–$200 billion
• Mid-cap: $2 billion–$10 billion
• Small-cap: $200 million–$2 billion

However, let me tell you that these are today’s numbers but these numbers may vary country to country and time to time. Say for Example in 1950s, the market cap of more than US $ 1 billion used to be Large Cap.

Now all the 30 stocks of Sensex are Large Cap means each of them have Market capitalization of more than US $ 10 Billion. Here are few Examples of Large Cap stocks of India.

01) Reliance Industries
02) ICICI Bank
03) HDFC Bank
04) SBI Bank
05) Infosys
06) L & T
07) ONGC
08) Maruti Udyog
09) NTPC…etc…