Share market basics
Market capitalisation: a company's total market value, calculated as the share price multiplied by the number of shares outstanding.
Market capitalisation is the market's valuation of a whole company. Multiply the current share price by the total number of shares outstanding. If SBI has about 892 crore shares and trades at ₹800, its market cap is roughly ₹7.1 lakh crore. Market cap tells you a company's size, not whether it is cheap or expensive; a ₹50 share can belong to a bigger company than a ₹5,000 share if it has far more shares. AMFI uses market cap to classify stocks as large, mid or small cap, which in turn shapes which mutual funds can buy them and how volatile they tend to be. Indices like Nifty 50 weight companies by free-float market cap, the value of shares actually available for trading. Because price changes daily, so does market cap, and a company can move between categories at each AMFI review.
VideoA share is a portion of a company. The share market is where those portions change hands. Here is how it works, what you can trade in it, and why most people who trade actively lose money.
VideoThe share market runs on two activities that look alike and are nothing alike. Investing is owning a business for years. Trading is profiting from price moves over hours or weeks. Mixing them up is behind most early losses.
VideoTrading comes in a few distinct forms, and the one you pick decides how much time, capital and stress it takes. This lesson explains intraday, swing, positional, futures and options trading with Indian examples.
