{"id":31,"date":"2019-09-17T04:47:04","date_gmt":"2019-09-17T04:47:04","guid":{"rendered":"https:\/\/www.eqwires.com\/tutorials\/?p=31"},"modified":"2020-04-18T23:48:27","modified_gmt":"2020-04-18T18:18:27","slug":"what-is-market-capitalization-what-is-net-worth","status":"publish","type":"post","link":"https:\/\/www.eqwires.com\/tutorials\/what-is-market-capitalization-what-is-net-worth\/","title":{"rendered":"What is market capitalization? What is net worth?"},"content":{"rendered":"\n<p> Market capitalization, commonly called&nbsp;market cap, is the market value of a publicly traded company&#8217;s outstanding shares. Market capitalization is equal to the share price&nbsp;multiplied by the number of shares outstanding. Since outstanding stock is bought and sold in public markets, capitalization could be used as an indicator of public opinion of a company&#8217;s net worth and is a determining factor in some forms of&nbsp;stock valuation. <\/p>\n\n\n\n<p>Market capitalization is used by the investment community in ranking the size of companies, as opposed to sales or total asset figures. It is also used in ranking the relative size of&nbsp;stock exchanges, being a measure of the sum of the market capitalization of all companies listed on each stock exchange. In performing such rankings, the market capitalization are calculated at some significant date, such as June 30 or December 31.<\/p>\n\n\n\n<p class=\"has-text-color has-medium-font-size has-dark-red-color\"><strong>What is Net worth? <\/strong><\/p>\n\n\n\n<p>Net worth&nbsp;is the value of all the non-financial and financial assets&nbsp;owned by an institutional unit or sector minus the value of all its outstanding liabilities. Since financial assets minus outstanding liabilities equal net financial assets, net worth can also be conveniently expressed as non-financial assets plus net financial assets. Net worth can apply to companies, individuals, governments or economic sectors such as the sector of financial corporations or to entire countries.<\/p>\n\n\n\n<p>Market Cap Terms: Traditionally, companies were divided into&nbsp;large-cap,&nbsp;mid-cap, and&nbsp;small-cap <\/p>\n\n\n\n<p class=\"has-text-color has-medium-font-size has-dark-red-color\"><strong>Large Cap Stocks<\/strong>:<\/p>\n\n\n\n<p>These are often stocks of\nBlue-chip companies which are established enterprises with large reserves of\ncash at their disposal. It is interesting to note that the larger size of the\nlarge cap companies does not mean that they grow more rapidly. In fact, it is\nthe small stock companies that tend to outperform them over the longer time\nframe. But large cap stocks do come with the benefit of allowing the investors\nto reap higher dividends in comparison to the smaller and mid cap company\u2019s\nstocks, ensuring that the capital is preserved over the long term period.<\/p>\n\n\n\n<p class=\"has-text-color has-medium-font-size has-dark-red-color\"><strong>Mid Cap Stocks<\/strong>:<\/p>\n\n\n\n<p>These are the stocks of medium\nsized companies that have a market capitalization of INR 250 Crore to about INR\n4000 crore. These companies have a well recognize name in the market which\nbrings along the benefit of potential for growth, as well as the stability that\nis usually accompanied with being a seasoned player in the market. Mid cap\ncompanies have a good track record of steady growth and are very similar to\nblue chip stocks barring their size. In the long term these stocks do and grow\nwell.<\/p>\n\n\n\n<p class=\"has-text-color has-medium-font-size has-dark-red-color\"><strong>Small Cap Stocks<\/strong>:<\/p>\n\n\n\n<p>As is suggestive of the name, small cap stocks have the smallest value in the market as compared to its counterparts. These are small sized companies that have a market capitalization of up to INR 250 and have the potential to grow at a good pace in the future. Investors who are willing to commit to a long term and are not very particular about the current dividends, and are willing to stand their ground during price volatility, can make significant gains in the future. As an investor you can buy these stocks when they are available at a cheap price during the initial stage of the company. There is no surety about the how the company will perform in the market since they are relatively new. Because these small cap companies are new they are highly volatile and their growth impacts the value and revenue of the company to a huge extent.<\/p>\n\n\n\n<p class=\"has-text-color has-dark-gray-color\">Eqwires \u2013 one of the biggest name in Indian stock market is<a rel=\"noreferrer noopener\" href=\"https:\/\/www.eqwires.com\/\" target=\"_blank\">&nbsp;top rated and most successful Research analyst in India<\/a>. We provide best trading ideas, investment strategies, trading techniques and our advanced research provides best results in stock market.<\/p>\n\n\n\n<p><strong>Eqwires Research Analyst<\/strong><\/p>\n\n\n\n<p class=\"has-text-color has-dark-gray-color\"><strong><a href=\"https:\/\/www.eqwires.com\/tutorials\/who-is-the-best-sebi-registered-investment-advisor-in-i\">Top-notch SEBI registered research analyst<\/a><\/strong><\/p>\n\n\n\n<p class=\"has-text-color has-dark-gray-color\"><strong><a href=\"https:\/\/www.eqwires.com\/\" target=\"_blank\" rel=\"noreferrer noopener\">Best SEBI registered Intraday tips provider and Best SEBI registered stock advisory company<\/a><\/strong><\/p>\n\n\n\n<p class=\"has-text-color has-dark-gray-color\"><a href=\"mailto:info@eqwires.com\">info@eqwires.com<\/a><\/p>\n\n\n\n<p class=\"has-text-color has-dark-red-color\"><strong><a href=\"https:\/\/t.me\/eqwires\">Telegram <\/a>| <a href=\"https:\/\/www.facebook.com\/eqwires\/\">Facebook <\/a>| <a href=\"https:\/\/twitter.com\/EqwiresRA\">Twitter<\/a><\/strong><\/p>\n\n\n\n<p class=\"has-text-color has-medium-brown-color\"><strong>Call: +91 9624421555 \/\u00a0<em>+91 9624461555<\/em><\/strong><\/p>\n\n\n\n<p><strong><a href=\"http:\/\/www.eqwires.com\/\">www.eqwires.com<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Market capitalization, commonly called&nbsp;market cap, is the market value of a publicly traded company&#8217;s outstanding shares. Market capitalization is equal to the share price&nbsp;multiplied by the number of shares outstanding. Since outstanding stock is bought and sold in public markets, capitalization could be used as an indicator of public opinion of a company&#8217;s net worth and is a determining factor in some forms of&nbsp;stock valuation. Market capitalization is used by the investment community in ranking &hellip; <a href=\"https:\/\/www.eqwires.com\/tutorials\/what-is-market-capitalization-what-is-net-worth\/\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;What is market capitalization? What is net worth?&#8221;<\/span><\/a><\/p>\n","protected":false},"author":2,"featured_media":36,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[201,172,136,138,134,164,139,140,106,98,72,97,184,73,135,137,133,104,141,161,160,159,74,75,158,166,103,102,101,105,165,76,77,78,79,174,80,81,99,82,183,168,167,170,83,84,85,86,87,108,88,202,155,154,89,100,90,91,92,93,94,95,96,3,107,192,156,157,207,177,176,175],"tags":[4,5,6,200,7,12,116,19,149,147,173,145,14,118,11,150,153,120,9,190,191,13,188,18,8,185,10,17,148,151,146,15,16,122,144,162,23,41,25,24,27,21,194,50,124,33,126,119,20,28,49,127,121,125,115,22,113,29,52,123,131,26,182,111,130,31,62,34,30,42,57,112,186,169,56,171,64,132,206,59,53,128,43,51,110,32,187,35,55,44,196,47,37,195,45,39,36,40,203,38,143,152,129,142,46,48,63,67,60,61,65,71,54,117,68,193,205,209,66,204,70,109,163,69,58,208,114,178,181,179,180],"class_list":["post-31","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-accurate-stock-tips-provider-in-india","category-best-advisory-service-provider-for-beginners","category-best-bank-nifty-future-calls","category-best-bank-nifty-options-tips-provider","category-best-bank-nifty-trading-tips-provider","category-best-equity-advisory-services-in-india","category-best-index-future-services","category-best-index-options-services","category-best-intraday-call-provider","category-best-intraday-tips-for-tomorrow","category-best-intraday-tips-provider-in-india","category-best-intraday-tips-site","category-best-intraday-tips-website-in-india","category-best-investment-advisor-in-india","category-best-nifty-future-calls","category-best-nifty-options-tips-provider","category-best-nifty-trading-tips-provider","category-best-options-tips-provider-in-india","category-best-options-trading-tips-provider-in-india","category-best-performing-pms-in-india","category-best-pms-in-india","category-best-portfolio-management-services-in-india","category-best-sebi-registered-advisory-company","category-best-sebi-registered-investment","category-best-sebi-registered-research-analyst","category-best-sebi-registered-stock-tips-provider","category-best-share-market-consultants-in-india","category-best-share-market-tips-provider-in-india","category-best-stock-market-advisory-services-in-india","category-best-stock-market-tips-provider-service","category-best-stock-tips-provider-in-india","category-business","category-commodity-market","category-currency","category-equity-market","category-fact-about-operator-based-calls","category-fii-based-calls","category-foreign-markets","category-free-intraday-stock-tips-for-tomorrow","category-genuine-stocks-tips-provider","category-how-can-i-make-profit-in-intraday-trading","category-how-to-earn-profit-from-intraday-trading","category-how-to-invest-in-stock-market","category-how-to-make-profit-in-intraday-trading-in-share-market","category-intraday-trading-tips","category-intraday-trading-tips-strategies","category-investment-adviser","category-investments","category-it-industry","category-jackpot-intraday-tips","category-most-accurate-stock-tips-provider","category-most-successful-intraday-strategy","category-most-successful-intraday-tips-provider","category-most-successful-stock-advisor-in-india","category-news","category-nifty-intraday-trading-tips","category-nse-fo","category-operator-based-calls","category-politics","category-portfolio-management-services","category-promotions","category-sebi-registered-advisory-company","category-stock-market","category-stock-market-basics","category-sureshot-tips-provider","category-top-10-advisory-company","category-top-rated-investment-advisor","category-top-rated-sebi-registered-stock-tips-provider","category-top-stock-market-advisors","category-truth-about-fii-based-calls","category-truth-about-jackpot-intraday-tips","category-truth-about-operator-sureshot-calls","tag-1-in-list-of-sebi-registered-advisory-companies","tag-1-stock-adviser-in-india","tag-100-profitable-intraday-tips","tag-100-sureshot-calls-provider","tag-100-sureshot-operator-calls","tag-100-sureshot-tips-provider","tag-accurate-stock-tips","tag-accurate-stock-tips-provider","tag-bank-nifty-options-tips-provider","tag-bank-nifty-trading-tips","tag-best-advisory-company-for-beginners","tag-best-banknifty-tips-provider-in-india","tag-best-equity-portfolio-management","tag-best-equity-tips-provider-in-india","tag-best-ethical-investment-advisor","tag-best-index-futures-services","tag-best-index-options-services","tag-best-intraday-call-provider","tag-best-intraday-calls-provider","tag-best-intraday-paid-service","tag-best-intraday-research-company","tag-best-intraday-tips","tag-best-intraday-tips-advisor-in-india","tag-best-intraday-tips-in-indian-stock-market","tag-best-intraday-tips-provider","tag-best-intraday-tips-site-in-india","tag-best-investment-adviser-in-india","tag-best-investment-advisor-in-india","tag-best-nifty-fut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