Market Capitalization

Market Capitalization, often referred to as “market cap,” is the total value of a company’s Outstanding Shares of Stock. It is calculated by multiplying the current Share price by the total number of outstanding shares. Market capitalization is used as a measure of a company’s size and is an important factor for investors when evaluating the value and growth potential of a company.

For example:

• If Company A has 1 million shares outstanding and the current share price is $50, its market capitalization would be $50 million (1,000,000 shares x $50/share).
• If Company B has 500,000 shares outstanding and the current share price is $200, its market capitalization would be $100 million (500,000 shares x $200/share).

Market capitalization can be classified into different categories:

• Large-cap: Companies with a market capitalization of $10 billion or more.
• Mid-cap: Companies with a market capitalization between $2 billion and $10 billion.
• Small-cap: Companies with a market capitalization of less than $2 billion.