Definition
The total market value of a company's outstanding shares, calculated by multiplying the current share price by the total number of outstanding shares. It serves as a key indicator of company size and is used for classification into large-cap, mid-cap, and small-cap categories.
Example Usage
"Apple became the first U.S. company to reach a market capitalization of $3 trillion in January 2022.”
Related Terms
StocksOutstanding SharesShare PriceLarge-CapMid-CapSmall-CapEquity Markets (Stock Markets)
Tags
ValuationCompany Size
Course Module
Module 1: Introduction to Financial Markets