Share market basics
Companies ranked 251st and below by market capitalisation in AMFI's list; the largest group of listed stocks and the most volatile and least liquid.
Small-cap stocks are companies ranked 251st and lower by market capitalisation in AMFI's half-yearly classification. There are thousands of them, from established regional businesses to tiny firms that barely trade. Small caps can grow many times over when a business succeeds, which is why they attract attention, and they can also fall 70% or more, hit lower circuits for days, or be delisted. Liquidity is thin, spreads are wide, research coverage is scarce and price manipulation through tips and pump-and-dump groups is far more common than in large caps. The Nifty Smallcap 250 index tracks the segment, and it has swung far more than Nifty 50 in every cycle. If you hold small caps, position sizes should be small, exits should be planned before entry, and the source of any recommendation should be examined closely.
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.
