Plain-English definitions, reviewed by an independent investor
Market Capitalization
Market cap is the total value of a company’s shares: its share price multiplied by the number of shares outstanding.
Market cap is the total value of a company’s shares: its share price multiplied by the number of shares outstanding.
Market Cap = Share Price × Shares Outstanding
Why it matters
It sizes a company so you can tell a small firm from a giant without reading a balance sheet.
Common confusion
Market cap is not the same as enterprise value, which also counts debt and cash.
Frequently Asked Questions
What are large-cap stocks?
Roughly companies worth over $10 billion. Mid-cap and small-cap sit below that, with more risk and growth potential.
Does market cap change daily?
Yes. It moves with the share price every trading day.