A stock market is a place where forces of demand and supply operate and where the investors interact to trade shares. There are two different types of stock market-over-the-counter and exchanges. In India the most popular stock exchanges are NSE and BSE. One of the important terminology with respect to stock exchange is Market Capitalization. It can be defined as the product of number of outstanding shares and the market price. On the basis of this; companies can be divided in small-cap, mid-cap and large-cap. Free-Float Capitalization is a product of number of free-float shares and market price of shares. And is used to calculate Sensex and NIFTY.
Read the full article here: Basic Toolkit for Stock Market Beginners