Market Capitalization

RECENT NEWS
MarketWatch  Jun 5  Comment 
Most investors weren’t expecting huge news from Apple Inc.’s software-focused developer conference Monday, but those hoping for glints of news that would push the company’s shares much closer to a record market cap may have been disappointed.
Financial Times  May 29  Comment 
Will Apple, Amazon, Microsoft or Alphabet reach the ‘quatro commas’ club first?
MarketWatch  Apr 12  Comment 
After a period of low volatility, cryptocurrencies have broken out of their recent ranges, surging to multiweek highs Thursday.
TechCrunch  Apr 3  Comment 
Spotify is done with its long-awaited “direct listing” experiment. The music streaming company went public without the IPO. After completing its first trade halfway through the day at $165.90, Spotify fell to $149.01, 10 percent beneath the...
Motley Fool  Apr 2  Comment 
After peaking at $835 billion on Jan. 7, the aggregate virtual currency market cap has since slid by more than $580 billion.
MarketWatch  Mar 28  Comment 
Tesla Inc.'s stock plunge has lopped over $14.5 billion off the electric car maker's market capitalization this month, and has slashed the value of co-Founder and Chief Executive Elon Musk's stake by nearly $3 billion. The stock has tumbled...




RELATED WIKI ARTICLES
 
TOP CONTRIBUTORS

Market Capitalization equals the price per share of a company times the number of shares outstanding

Market Capitalization, often shortened as "Market Cap", is the total market value of a company's outstanding shares. Market capitalization is calculated by multiplying the number of shares outstanding (this includes the value of all listed categories of a corporation's stocks - preferred stock, common shares, etc) by the market price per share which is the current value of a company. For example, if a company has 10 million shares, and the current price per share is $10, then the company's market capitalization is (10 million shares x $10), or $100 million.

Market cap is the public market's gauge of how much a company is worth.

Classification of Market Cap

  • Small cap companies with a market cap under $1B (under $2B in some classifications)
  • Mid cap companies with a market cap between $1-5B ($2B to $10B in some classifications)
  • Large cap companies with a market cap over $5B (over $10B in some classifications)

You may also see reference to "Mega cap" ($200B or more), "Micro cap" ($50M to $300M) and even "Nano cap" (under $50M).

Examples of Mega cap include companies like Exxon Mobil and Apple (AAPL).

Examples of Large cap include companies like Google.

Market Cap Classes and Risk

For investors it is important to have some knowledge of how different classes behave. In general, the larger the market cap the greater the stability and the lower the risk. In general, large caps are mature companies and small caps are younger, growing companies. Small caps carry greater risk, but also more upside potential than large caps.

Some mutual funds focus on specific market cap classes and some strive for a mix of different classes.

Other Uses of Market Cap

The market capitalization or size of an industry, or entire stock exchange or entire nations may be calculated.

By the end of 2007 the market cap of the NY Stock Exchange was $15.65 trillion. Including the American SE and NASDAQ the total market cap for the US was $19.92T. The market cap for the entire world was just more than $55T at that time.

Please install Flash Player to view this chart.
Please install Flash Player to view this chart.
Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki