What is 'Market Capitalization'?

Market Capitalization is the total dollar market value of all of a company's outstanding shares.

Sharper Insight. Smarter Investing. Manage Preferences TERM OF THE DAY Market Capitalization Market capitalization refers to the total dollar market value of a company's outstanding shares. Commonly referred to as "market cap," it is calculated by multiplying a company's shares outstanding by the current market price of one share. The investment community uses this figure to determine a company's size, as opposed to using sales or total asset figures. Breaking it Down: Using market capitalization to show the size of a company is important because company size is... Read More Related to "Market Capitalization" Enterprise value versus market capitalization Learn the difference between market capitalization and enterprise value, and understand how these two common valuation tools are used in value investing. Read More Understanding Small- And Big-Cap Stocks If you don't realize how big small-cap stocks can be, you'll miss some good investment opportunities. Read More What is the difference between market capitalization and shares outstanding? Understand the relationship between shares outstanding and market capitalization and how market cap is interpreted to establish the size and value of a company. Read More Related Definitions Market Value Market value is the price an asset would get in the marketplace. Market value also refers to the market capitalization of a publicly-traded company. Read More Standard & Poor's 500 Index - S&P 500 An index of 505 stocks chosen for market size, liquidity and industry grouping, among other factors. Read More Capital Markets "Capital Markets" refers to activities that gather funds from some entities and make them available to other entities needing funds. Read More Shares Shares are a unit of ownership of a company that may be purchased by an investor. Read More You are currently subscribed as: mondemand.forex@blogger.com Unsubscribe  |  Manage Subscriptions Investopedia, LLC, A Division of IAC. 114 West 41st St, floor 8, New York NY 10036 Copyright © 2018, Investopedia, LLC. All Rights Reserved Follow Us: