market cap

Market cap is the total dollar market value of a company’s outstanding shares of stock. The full actual name is “market capitalization”. Multiply the total number of a company’s outstanding shares by the current market price of one share to arrive at the Market capitalization value. But, it could be difficult to understand as theory.

market cap

Let’s just see a quick example. A company with 1 million outstanding shares selling for $1000 each would have a market capitalization of $1 billion. Subsequently, market capitalization divides stocks into large cap, medium cap and small cap for normal investors. In conclusion, Market capitalization helps anyone estimate a company’s size compared to using revenue or profits.

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