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September 16, 2025

Market capitalization, often referred to as 'market cap', is the total value of a company's outstanding shares of stock. To calculate it, you multiply the current stock price by the total number of shares outstanding. For example, if a company's stock is priced at $50 and it has 1 million shares, its market cap is $50 million (50 x 1,000,000). The stock price, on the other hand, is simply the cost to purchase one share of that company and can fluctuate based on supply and demand. Understanding both helps you assess a company’s size and stage in the market.

Market capitalization is the total value of all outstanding shares of a publicly traded company's stock. It is calculated by multiplying the stock price by the total number of shares available. This metric is often used to help investors understand the relative size of companies and to assess their growth potential and risk.