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