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What is market cap ?

The aggregate value of a company is known as market cap. When we invest in a stock, we should prefer a company with market cap of around 1000 crore. However, when other parameters are right in order and favour a stock, there can be an exception and a company with less market cap can be zeroed - in.

Penny stock with single digit or two digit market cap should be avoided. These should be singled out as they may disappoint you ; no doubt, sometimes, there being a positive news based trigger, they bring windfall of rewards. But, once in a full moon night.

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