Market Capitalization (Market Cap)

Market capitalization (market cap) is the total value of a company's outstanding shares of stock, representing its overall size and worth in the stock market. It is calculated using the formula: 

Market Cap = Stock Price × Total Outstanding Shares 

Market Cap Categories:

• Large-Cap ($10B+): Established companies with stable growth (e.g., Apple, Microsoft).
• Mid-Cap ($2B–$10B): Growing companies with moderate risk.
• Small-Cap (<$2B): Younger or niche companies with higher growth potential but more volatility.

Market cap helps investors assess a company's size, risk level, and growth potential, influencing portfolio diversification strategies.