DOES A LARGE CAP STOCK ALWAYS HAVE A LARGE EQUITY BASE?

1. For ensuring investment universe uniformity of Equity MFs, Sebi has defined Large cap, Mid cap and Small cap stocks, in terms of full market capitalization, as 1st-100th company, 101st-250th company, and 251st company onwards respectively. 
2. This list of stocks is prepared and uploaded by AMFI on its website, and updated every six months based on June and December end datas each year.
3. Market capitalization (market cap) refers to the market value of the outstanding share capital of a company, i.e. its share price multiplied by its share capital. 
4. It is, therefore, an indicator of the size of a company in terms of the current market price of its shares, but not necessarily of a large equity base in all cases.
5. Generally, large-caps are firms with steady and predictable growth rates, while mid-caps have higher growth potential, but with greater business risk.
6. While a large-cap stock's price normally reflects all the available information and is in line with the underlying value, in case of mid- and small-cap stocks, it’s possible to benefit from information not widely 
known. 
7. Share prices of large-caps tend to be less volatile than mid- and small- caps, and also have a higher liquidity. 
8. While stock prices of mid- and small-caps are likely to do better than large-caps in a sustained bull market, they also tend to fall more than large-caps in a sustained bear market.