If you want to invest in any company first you should know about company. So for understanding the company we will start with types of company and how many sectors are in stock market.
Basically there are three types of companies in stock market
1. Large cap
2. Mid cap
3. Small cap
Stock market has distributed companies on the basis of their market capital.
Large cap companies has huge market capital and mostly are fully developed companies. Nifty 50 and Sensex are indicator of market which include large cap companies to show the trend of market.
Similarly like Nifty 50 and Sensex there are more indicator like Nifty midcap, Nifty smallcap, Nifty Bank etc.
Nifty Midcap has midcap companies as its name shows and Nifty Smallcap shows small cap companies.
Investors prefer to invest in small cap and midcap who are risk taker because small and midcap are in developing stage so their value of share is lower than the large cap companies. small and midcap companies provide more returns than large cap companies.
