Apna Stock, Apna Paisa, Apna Future!

Welcome to an exciting journey into the world of stocks and their classifications! Today, we'll unravel the primary ways stocks are grouped.

Let's start with market capitalization - a key to understanding a company's size. Imagine you and your friend both have lemonade stands. You sell your lemonades for Rs 50 per glass, while your friend sells them for Rs 100 per glass. Now, imagine you both have 100 glasses of lemonade to sell. When you multiply the price per glass with the total number of glasses, you get your market capitalization. In this example, your market capitalization would be Rs 50 x 100 = Rs 5,000, while your friend's would be Rs 100 x 100 = Rs 10,000. Even though your lemonades are cheaper, your friend's lemonade stand has a bigger market capitalization because of the higher price and the same number of glasses.

Stocks can be broadly classified into three categories:

• Large-cap: These are like big corporations, just like big companies in the business world. Imagine a giant tech company like Amazon or a famous brand like Coca-Cola. They have a huge market capitalization and are among the 100 biggest companies
• Mid-cap: These are like medium-sized businesses. Think of successful companies like a popular chain of restaurants or a growing tech start-up. They are ranked from 101 to 250 in terms of market capitalization
• Small-cap: These are like small businesses that are just starting to make their mark. Picture a local boutique or a small software company. They are ranked 251 and below in terms of market capitalization

But we're not done exploring yet! Let's venture into the captivating world of industry categorization. Consider two companies: ABC Pharmaceuticals and XYZ Construction. Both belong to different sectors. ABC Pharmaceuticals is part of the pharmaceutical sector, which deals with medicines and healthcare. On the other hand, XYZ Construction is part of the construction sector, which is involved in building and infrastructure. The vast world of stocks extends beyond these two sectors, encompassing others like #banking, #finance, #agriculture, and #hospitality.

Get ready to immerse yourself in a world where numbers come alive and stocks tell captivating tales of investment opportunities. Let's embark on this journey together!