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.