Market Capitalization

Category: finance

The total dollar market value of a company’s outstanding shares of stock.

Calculated by multiplying the current share price by the total number of shares outstanding. Market cap is the primary way to categorize company size: Large-cap ($10B+), Mid-cap ($2B–$10B), and Small-cap ($300M–$2B). It dictates the stock’s inclusion in major indices like the S&P 500.

Common Examples

• The company’s growth trajectory pushed its market capitalization past the trillion-dollar mark, cementing its status as a primary index driver.
• Small-cap market capitalization stocks carry significantly higher volatility but offer a higher ceiling for explosive growth compared to mature large-cap blue chips.