Investing Essential 1- What exactly is Large Cap, Mid Cap, Small Cap?

We keep hearing Large Cap, Mid Cap and Small cap when we eavesdrop on a discussion between our 'stock market guru' friends but when exactly does a company become Mid Cap from Small Cap and Large Cap from Mid Cap?

And NO, we are not looking for this answer:

"Large cap are big companies, Mid cap are not so big companies and small cap are small companies"

CATEGORY	RANK (By Market Cap)	MARKET CAPITALISATION
LARGE CAP	1-100	Rs. 20,000 cr and more
MID CAP	101-250	Rs. 5,000 cr to 20,000 cr
SMALL CAP	250 and above	Below Rs. 5,000 cr

By SEBI's definition, if you sort all the listed companies by their market capitalisation, the top 100 are classified as Large cap companies and they generally have a market capitalisation above Rs. 20,000 cr. Companies ranking from 101-250 are classified as Mid cap companies and they tend to have their market cap between Rs. 5,000 cr and Rs. 20,000 cr. The remaining companies below 250 are called Small Cap and these tend to have a market cap of below Rs. 5,000 cr.

We get it Vivek, but didn't you start "SABKE LIYE INVESTING" for beginners?? We don't know what Market Capitalisation is!! Where's the clarity on that?

Ummm, You're right. I'll explain this in the next part of 'Investing essentials'!