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This website is purely ACADEMIC in nature and NOT a stock market recommendation service or a tip provider. No live data or feeds are provided and all information is historic only. Information is provided for ease of understanding for the purpose of learning. Accuracy of definitions etc is not mantained. I am not a SEBI or IRDA registered.
SME stands for Small and Medium Enterprises.
Small companies but hard working companies can tap the capital market by getting themselves listed in the SME segment of the stock exchanges first before growing up and moving to the main segment of the stock market.
Like other type of Equity shares, SME companies come to the capital market in the form an Initial Public Offer (IPO).
The IPO of SME companies is called an SME IPO.
Investing in SME stocks is suitable for high risk investors only because of several factors.
Very little data of the company will usually be available in the public domain. This means that fundamental analysis of the company is very difficult.
Very little promoters discloses will be possible and this means that tracking performance of the company is difficult.
The companies are usually very small and adverse business conditions will impact these companies a lot.
The equity base being offered for trading and investing will be low.
Investing in these scripts is done in lot size multiples and hence requires high capital.
Trading in SME is even more riskier because it is not continuous and time slots are allotted for trade.
NSE Emerge is the name of the NSE platform where SME stocks will be traded on the NSE.
In November 2017, NSE Emerge has completed listing of the 100th company on the NSE Emerge platform.
The stock ticker for these stocks often have a suffix -SM
For example, the ticker for Momai is MOMAI-SM
- Listed, Unlisted and De-Listed Companies
- Initial Public Offer (IPO)
- Follow-on Public Offer (FPO)
- Offer For Sale (OFS)
- Qualitative factors of company in stock investing
- Quantitative factors of company in stock investing
- Market Capitalization