{"id":1519,"date":"2017-09-26T09:29:33","date_gmt":"2017-09-26T09:29:33","guid":{"rendered":"http:\/\/wealthhunterindia.com\/videos\/?p=1519"},"modified":"2018-01-06T07:06:39","modified_gmt":"2018-01-06T07:06:39","slug":"what-is-power-of-compounding","status":"publish","type":"post","link":"https:\/\/wealthhunterindia.com\/videos\/what-is-power-of-compounding\/","title":{"rendered":"WealthhunterIndia | What is Power of Compounding?"},"content":{"rendered":"<p> What is Power of Compounding?<\/p>\n<p><iframe loading=\"lazy\" src=\"https:\/\/www.youtube.com\/embed\/ja1mtQd7eLI\" width=\"560\" height=\"315\" frameborder=\"0\" allowfullscreen=\"allowfullscreen\"><\/iframe><\/p>\n<p> What is Power of Compounding?<br \/>\nSimply put, compounding refers to the re-investment of income at the same rate of return to constantly grow the principal amount, year after year. &#8230; These advertisements are very often misleading because what the borrower is referring to is the simple interest that you will earn during the period of your investment.<\/p>\n<p>What Is Market Capitalization<br \/>\nThe term market capitalization which is in short called market cap basically means the aggregate valuation of the company on the basis of the current share price in the market<br \/>\nand the total number of outstanding shares. It is calculated by multiplying the current share price by the total number of outstanding shares of the company.<br \/>\n\u00a0<br \/>\n\u00a0<br \/>\nIt helps the investor in determining the return and risk in a particular share. It helps the investors in investing in that particular share which meets their risk and diversification criteria.<br \/>\nFor e.g.:- If a particular company current market price of each share is Rs 10 and the total number of outstanding shares is 1 million then the market capitalization of such company will be equal to = 1million * 10 = Rs1 crores.<br \/>\n\u00a0<br \/>\nOn the basis of market cap, stocks can be divided into 3 categories:-<br \/>\n1) Large Cap Stocks<br \/>\nThe stocks with a market capitalization of Rs.10, 000 crores or more comes under large-cap stocks. \u00a0These are considered blue chip stocks that are stocks of companies that are large and well established having a larger market share and are considered to be safe investments. The information about such companies is readily available in newspapers and magazines.<br \/>\nEgg of such stocks is \u2013 Infosys, TCS, WIPRO etc.<br \/>\n\u00a0<br \/>\n2) Mid Cap Stocks<br \/>\nStocks of companies with a market cap ranging between Rs. 2 crore and Rs. 10 crores are mid-cap stocks. These are midsized companies and reconsidered relatively more risky than large-cap companies.<br \/>\nE.g. of such stocks are Apollo Tyres, Bank of India, Bata India Ltd. etc.<br \/>\n\u00a0<br \/>\n3) Small Cap Stocks<br \/>\nStocks of companies with market cap of less than Rs. 2 crores are small-cap companies. These are basically startup companies or those which are in their early stages of development and hence have a smaller client base, the risk is huge and revenue will be lower in the beginning phase.<br \/>\nE.g. of such stocks are- Andhra Bank, ANG Industries Ltd., Amrapali Industries Ltd. etc<\/p>\n<p> What is Power of Compounding?<\/p>\n","protected":false},"excerpt":{"rendered":"<p>What is Power of Compounding? What is Power of Compounding? Simply put, compounding refers to the re-investment of income at the same rate of return to constantly grow the principal amount, year after year. &#8230; These advertisements are very often misleading because what the borrower is referring to is the simple interest that you will&hellip;<\/p>\n","protected":false},"author":2,"featured_media":1520,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"video","meta":{"footnotes":""},"categories":[61],"tags":[395,396,397,398,399],"class_list":["entry","author-manager","post-1519","post","type-post","status-publish","format-video","has-post-thumbnail","hentry","category-videos","tag-power-of-compounding","tag-power-of-compounding-example","tag-power-of-compounding-formula","tag-power-of-compounding-in-sip","tag-power-of-compounding-math"],"_links":{"self":[{"href":"https:\/\/wealthhunterindia.com\/videos\/wp-json\/wp\/v2\/posts\/1519","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/wealthhunterindia.com\/videos\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/wealthhunterindia.com\/videos\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/wealthhunterindia.com\/videos\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/wealthhunterindia.com\/videos\/wp-json\/wp\/v2\/comments?post=1519"}],"version-history":[{"count":5,"href":"https:\/\/wealthhunterindia.com\/videos\/wp-json\/wp\/v2\/posts\/1519\/revisions"}],"predecessor-version":[{"id":2315,"href":"https:\/\/wealthhunterindia.com\/videos\/wp-json\/wp\/v2\/posts\/1519\/revisions\/2315"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/wealthhunterindia.com\/videos\/wp-json\/wp\/v2\/media\/1520"}],"wp:attachment":[{"href":"https:\/\/wealthhunterindia.com\/videos\/wp-json\/wp\/v2\/media?parent=1519"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/wealthhunterindia.com\/videos\/wp-json\/wp\/v2\/categories?post=1519"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/wealthhunterindia.com\/videos\/wp-json\/wp\/v2\/tags?post=1519"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}