What Is Market Capitalization?
What is market capitalization?
Market cap is share price × shares outstanding. It's the standard way to size a company.
How do you calculate market cap?
Multiply current share price by total shares outstanding (in the annual report).
Large-cap, mid-cap, small-cap?
Mega-cap >$200B. Large-cap $10–200B. Mid-cap $2–10B. Small-cap $300M–$2B. Micro-cap below $300M.
Why does market cap matter?
It drives index inclusion, risk profile, and position sizing for most funds.
Frequently asked questions
Is market cap the same as company value?
No. Enterprise value adds debt and subtracts cash to get the true acquisition price.
Are large-cap stocks safer?
On average, yes. They tend to be more profitable and less volatile, but grow more slowly.
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