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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 all shares of a company. Same as market cap.
Why It Matters
Market cap tells you a company's size in the stock market. Apple at $3 trillion is the world's most valuable company - bigger than the GDP of most countries. Market cap = share price × shares outstanding. It's a better measure of size than stock price alone: a $500 stock isn't necessarily 'bigger' than a $50 stock.
Key Points
- Calculate: Stock Price × Total Shares Outstanding = Market Cap
- Size categories: Large cap ($10B+), Mid cap ($2B-$10B), Small cap ($300M-$2B), Micro cap (<$300M)
- Market cap changes constantly as stock prices move - Apple has gained and lost $300B+ in single days
Related Terms
Common Questions
The total value of all shares of a company. Same as market cap. Market cap tells you a company's size in the stock market. Apple at $3 trillion is the world's most valuable company - bigger than the GDP of most countries.
Market cap tells you a company's size in the stock market. Apple at $3 trillion is the world's most valuable company - bigger than the GDP of most countries. Market cap = share price × shares outstanding. It's a better measure of size than stock price alone: a $500 stock isn't necessarily 'bigger' than a $50 stock.
Calculate: Stock Price × Total Shares Outstanding = Market Cap
Size categories: Large cap ($10B+), Mid cap ($2B-$10B), Small cap ($300M-$2B), Micro cap (<$300M)
Market cap changes constantly as stock prices move - Apple has gained and lost $300B+ in single days