There are a number of methods available to Indian investors who want to buy US stocks. After all, some of the largest businesses in the world thrive in the US economy. The Indian investor has a wide range of options, from the FAANG companies—Facebook, Apple, Amazon, Netflix, and Google—to some of the other top-performing US stocks, including Tesla and Microsoft, among others.
But how can you begin choosing the ideal equities to create a strong long-term portfolio? Market Capitalization is a wonderful place for beginners to start. When analysts and financial advisors advise investing in large-cap stocks, they are referring to the market value of the stock. The large-cap category includes equities with a high market capitalization, followed by mid-cap stocks with a lower market capitalization and small-cap stocks with an even lower market capitalization.
How do you ascertain the market capitalization, then? There are a set number of outstanding shares, or shares that shareholders can trade on the stock exchange, for each listed firm. Market capitalization, often known as market cap, is calculated by multiplying the number of outstanding shares by the share’s current price. A business, for instance, with 10 million outstanding shares trading at $100 each would have a $1 billion market cap.
Investors can compare stocks more effectively by looking at the market capitalization. The investor benefits from understanding the relative size of one company to another. A similar operation might be carried out on all the stocks listed on a stock market like the NASDAQ 100 or within a particular industry like the pharmaceutical or financial sectors. Large-cap stocks with a large market cap are frequently market leaders and highly sought after by investors globally. They not only represent reputable and well-known businesses, but they also give investors access to sufficient cash.
The list of stocks may fluctuate since market capitalization is a result of market price. The top 5 US stocks by market capitalization are shown below, and you might want to include them in your portfolio:
APPLE: Apple Inc. creates, produces, and sells personal computers, portable digital music players, and mobile communication and media devices. The business offers a variety of connected software, services, add-ons, networking products, and apps and third-party digital content. The Americas, Europe, Greater China, Japan, and Rest of Asia Pacific are among the company’s segments.
Equipment for Communications Industry
Market cost: 119.26 dollars
52-week range: US$53.16 to 137.98
2,027,635.00 USD Market Cap
iPhone, iPad, Mac, iPod, Apple Watch, Apple TV, a selection of consumer and business software programmes, the iPhone OS (iOS), OS X, and watchOS operating systems, iCloud, Apple Pay, and a variety of accessory, service, and support options are some of the company’s goods and services.
MICROSOFT: A technology company is Microsoft Corporation. A variety of software products, services, and gadgets are developed, licenced, and supported by the business. Productivity and Business Processes, Intelligent Cloud, and More Personal Computing are the company’s segments.
Software & programming sector
Market value: USD 216.51
52-week range: USD 132.53 to 232.85
Market Capitalization (MIL): USD 1,636,923.00
Operating systems, server applications, business solution apps, desktop and server administration tools, software development tools, video games, training, and certification for computer system integrators and developers are just a few of the company’s products. Additionally, it creates, produces, and markets gadgets that interface with its cloud-based services, such as personal computers (PCs), tablets, gaming and entertainment consoles, phones, and other intelligent devices.
AMAZON: Through its websites, Amazon.com, Inc. provides a variety of goods and services. The Company’s products comprise both those provided by third-party sellers and those that it obtains from vendors for resale. Additionally, it produces and retails electronic equipment.
Sector: Retail (Catalog & Mail Order)
3,128.81 USD Market Price
1,627.00 to 3,550.00 USD during a 52-week period
Market Capitalization (MIL): USD 1,569,884.00
Additionally, the business offers services like advertising. Additionally, it provides access to Amazon Prime, a subscription service that gives free shipping as well as unlimited streaming of different movies and television shows.
GOOGLE: Industry: Data processing and programming for computers
Cost on the market: $1781.38 52 $1,818.06 to $1,013.54 per week
1.203 trillion dollars’ worth of market capitalization
FACEBOOK: The primary goal of Facebook, Inc. is to create tools that let users connect and share content on mobile devices, desktop computers, and other surfaces. Facebook, Instagram, Messenger, WhatsApp, and Oculus are among the goods offered by the company. On desktops and mobile devices, Facebook enables individuals to connect, share, explore, and communicate with one another.
Services in the Computer Industry
Market cost: $276.95
52-week range: US$137.11 to 304.67
Market Cap: 788,834.60 US dollars
