What is 'Market Capitalization'?

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

Term of the Day | Words to Know Market Capitalization Market capitalization refers to the total dollar market value of a company's outstanding shares of stock. Commonly referred to as "market cap," it is calculated by multiplying the total number of a company's outstanding shares by the current market price of one share. As an example, a company with 10 million shares selling for $100 each would have a market cap of $1 billion. The investment community uses this figure to determine a company's size, as opposed to using sales or total asset figures. In an acquisition, the market cap is used to determine whether a takeover candidate represents a good value or not to the acquirer. Read More » Related to "Market Capitalization" Market Capitalization Defined What is market capitalization, what are mega-, large-, mid- and small-cap stocks and how each suits different investing styles. Read More » Market Capitalization vs. Equity: What's the Difference? Understand the difference between market capitalization and equity, two primary measurements used to evaluate the worth of a company. Each term represents a different way of looking at a company's value. Read More » SPONSORED BY INVESCO The Complete Guide to ETFs ETFs are becoming increasingly popular and soaring to new heights among investors. Invesco's insights can help you determine if these investment vehicles are right for you. Learn More » Understanding Small Cap and Big Cap Stocks If you do not realize how big small cap stocks can be, you'll miss some good investment opportunities. Read More » Sign Up for 'The Express' Want more Investopedia market news? Get market insights and financial headlines before the opening bell. Make your mornings more enjoyable, for free. Check it Out » Related Definitions Equity There are various types of equity, but equity typically refers to shareholders' equity, which represents the amount of money that would be returned to a company's shareholders if all of the assets were liquidated and all of the company's debt was paid off. Read More » Fundamentals Fundamentals consist of the basic qualitative and quantitative information that underlies a company or other organization's financial and economic position. Read More » Warrant A derivative that gives the holder the right, but not the obligation, to buy or sell a security at a certain price before expiration. Read More » Dilution Dilution occurs when a company issues new stock which results in a decrease of an existing stockholder's ownership percentage of that company. Read More » CONNECT WITH INVESTOPEDIA Email sent to: mondemand.forex@blogger.com To update your newsletter preferences or unsubscribe, click here. 114 West 41st St, floor 8 New York NY 10036 © 2020, Investopedia, LLC, All Rights Reserved | Privacy Policy