Market Capitalization

Market Capitalization (CAP) is the total dollar market value of all a companies outstanding shares.

Market capitalization =  company’s shares outstanding  X  current market price of one share.

 

  • Outstanding shares are stocks currently held by investors, including restricted shares owned by the company’s officers and insiders, as well as those held by the public.
  • Restricted shares are insider holdings that are under some other kind of sales restriction.

Stocks of large, medium and small companies are referred to as large-cap, mid-cap, and small-cap, respectively

  • Large Cap:     $10 billion and greater
  • Mid Cap:        $2 billion to $10 billion
  • Small Cap:     Less than $2 billion

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