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Write the difference between large cap stock and small cap stock.
The major differences between large cap stock and small cap stock are as follows −
Large Cap Stock
If market capital is greater than 20,000 crores, then it is called large cap stock.
The risk is less.
There are less returns.
It has relatively high stability in business.
The availability of information is high.
It has less growth potential.
Small Cap Stock
If the market capital is less than 500 crores, then it is called as small cap rock.
The risk is high.
There are high returns compared to mid-cap.
It has relatively low stability in business.
Less information is available.
It has high growth potential.
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