Market Capitalisation : It refers to the total value of a company determine with the help of outstanding shares of a company and current market price of a share. It is also known as market cap. It is different from real value of a company. With the help of market capitalisation companies are divided into groups like small cap, large cap and medium cap company. In market capitalisation, it does not mean that if company having low market price of shares has small capitalisation. The small cap company has higher risk and less assets in comparison to mid cap or large cap company. The medium cap or mid cap company has less risk in comparison to small cap company. And the last group is large cap in which the company have large number of assets and low risk of default. The market capitalisation is use for public company. It helps to measure the size of a company. Market capitalisations of some companies are: Company name Market capitalisation in Rs. crore Tata Consultan...
This blog is totally for education purpose which helps to solve finance related numerical like time value of money, annuity ,perpetuity, technique of capital budgeting, cost of capital, working capital management and hire purchase etc.