Small, medium and large caps
Market cap calculation
Shares are categorised as small, medium or large, depending on their market capitalisation (cap). Market cap is the total value of the listed company, which is found by multiplying the number for shares by the current share price.
A company with a share price of R10 and 1 000 shares in issue would have a market cap of R10 000.
Market capitalisation: JSE Top40
On the local market, the companies in the Top40 index are considered large caps. The MidCap index comprises stocks ranked 41 to 100 on the market. These are medium cap shares. Small caps are the companies with values smaller than the top 100 listed companies.
There is another way of defining small, medium and large caps: Anything with a market cap of over R10 billion is a large cap and a small cap has a market cap below R1 billion, leaving the R1 billion to R10 billion market caps shares as medium or mid-cap shares.