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StockCram is not a broker-dealer, investment adviser, or financial institution. All content is for educational and informational purposes only and should not be construed as personalized investment advice. Consult a qualified financial professional before making investment decisions. Past performance does not guarantee future results.Simple Definition
The total value of a company based on its stock price.
Why It Matters
Market cap tells you how big a company is. Apple at $3+ trillion is a 'mega-cap' - it would take you 95,000 years to count to that number. Tesla at $800 billion is 'large-cap'. Your local pizza chain might be 'micro-cap'. Size affects risk and growth potential.
Key Points
- Calculate it: Stock Price × Total Shares Outstanding
- Large-cap ($10B+) = stable but slower growth. Small-cap ($300M-$2B) = risky but more upside
- A $50 stock isn't 'cheaper' than a $500 stock - market cap is what matters
Related Terms
Common Questions
The total value of a company based on its stock price. Market cap tells you how big a company is. Apple at $3+ trillion is a 'mega-cap' - it would take you 95,000 years to count to that number.
Market cap tells you how big a company is. Apple at $3+ trillion is a 'mega-cap' - it would take you 95,000 years to count to that number. Tesla at $800 billion is 'large-cap'. Your local pizza chain might be 'micro-cap'. Size affects risk and growth potential.
Calculate it: Stock Price × Total Shares Outstanding
Large-cap ($10B+) = stable but slower growth. Small-cap ($300M-$2B) = risky but more upside
A $50 stock isn't 'cheaper' than a $500 stock - market cap is what matters