market capitalization
Market capitalization, often referred to as market cap, is a measure of a company’s total value as determined by the stock market. It is calculated by multiplying the current share price by the total number of outstanding shares. For example, if a company has 1 million shares priced at $10 each, its market cap would be $10 million. Market cap helps investors gauge the size and investment potential of a company; larger companies (large-cap) may be more stable, while smaller ones (small-cap) can offer greater growth potential but come with higher risk.
Additional Insights
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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 shares available. Market cap helps investors assess a company's size and value in the stock market. Companies are typically categorized as large-cap, mid-cap, or small-cap based on their market capitalization, which can indicate their level of risk and potential for growth. It serves as a useful metric for comparing different companies within the same industry.