Market Capitalization

Definition

Market capitalization, or market cap, is the total value of a company's outstanding shares of stock, calculated by multiplying the current share price by the total number of shares. Companies are generally categorized as large-cap (over $10 billion), mid-cap ($2 billion to $10 billion), or small-cap (under $2 billion). Market cap helps investors gauge the relative size of a company and assess its risk profile and growth potential.