Market Capitalization
Often called MCAP or Market Cap, stands for aggregate value of company. The sum is calculated multiplying the number of issued stocks by their current price on the market.
For example, if company have 10.000.000 shares with their current price per share at $ 30, the sum of market capitalization is $300.000.000.
There is a diverse market cap classification across the globe, but in US, companies worth less than $1 billion is considered small cap, $1 to $5 billion is considered mid cap, and above $5 billion is usually considered large cap. Have in mind that there is always variations between these cutoffs, but using above classification, you can’t go wrong.
| Related Terms: Book Value per Share Reverse Stock Split Russell 2000 Secondary Offering Small Cap Standard & Poor's 100 Wilshire 5000 Index Enterprise Multiple Domini 400 Social Index |