Market capitalization!

Equity market is classified by market capitalization (Mcap). Small-cap stocks are those whose Mcap is below Rs5,000 crore and large-cap stocks are those with Mcap above Rs20,000 crore. In between these two points are the mid-cap stocks. Usually, small-cap stocks by virtue of being in small values are also less liquid and more volatile. Penny stocks are usually shares of companies which are small in size, illiquid and susceptible to price manipulation, but not all small cap stocks are penny stocks. Usually, penny stocks are available under Rs 10 market price and that’s where the name comes from. Other way to define is first 100 stocks in terms of highest market capitalization are called Large-cap. Then 101 to 250 are Mid-cap and everything from 251 is termed as Small-Cap.