What is Market Capitalization?
Market capitalization, often shortened to market cap, is the total value of a company's shares, found by multiplying the share price by the number of shares. It is a quick way to gauge a company's size, and companies are often grouped as large cap, mid cap, or small cap. Larger caps tend to be more established, while smaller caps can be more volatile.
Why Market Capitalization matters
Company size affects how steady or jumpy a stock tends to be, which feeds directly into risk.
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