Write the difference between large cap stock and small cap stock.

Banking & FinanceManagementCompanies/Organisations

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.

raja
Published on 27-Jul-2020 11:43:15
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