Market capitalization, also known as market cap, is a measure of the size of a company. It is calculated by multiplying the company’s stock price by the number of shares outstanding. For example, if a company has 1 million shares outstanding and its stock price is $50 per share, its market capitalization would be $50 million.
Market capitalization is a commonly used metric to evaluate the size of a company and is often used as a way to classify companies into categories such as large cap, mid cap, and small cap. Large cap companies have market capitalizations of $10 billion or more, mid cap companies have market capitalizations of $2 billion to $10 billion, and small cap companies have market capitalizations of less than $2 billion.