Market Capitalization

The Economic Times  Nov 19  Comment 
India’s market capitalisation has risen 41% so far this year, highest among all countries, on the back of Rs 93,000-crore investments by FIIs.
The Economic Times  Nov 3  Comment 
The first level in the downside will be around 8250, possibly 8180. I do not see the index falling much below 8180 or breaking that.
The Economic Times  Oct 30  Comment 
Since the last two or three sessions, other indices have also been participating - particularly energy and IT.
TechCrunch  Oct 6  Comment 
 Unlock that value. Following news and confirmation that HP will separate itself into two separate, public entities, investors sent its shares soaring more than 5 percent, to $36.87, at the end of regular trading. That’s a market cap gain of...
Yahoo  Oct 1  Comment 
The greenback has been grinding higher this year in what could be its best annual performance since 2010 according to Sam Stovall of S&P Capital IQ.
The Economic Times  Oct 1  Comment 
Traders said consumer good companies were seen as safer bets given the expected rise in disposable incomes.
The Straits Times  Sep 30  Comment 
October 01, 2014 1:31 AM THE curtain came down on the third quarter yesterday with the total market value of Singapore-listed companies at a five-month low.
The Hindu Business Line  Sep 30  Comment 
Laying out an ambitious growth agenda for Reliance Capital, Anil Ambani today said the company would triple the capital deployed in housing finance activities besides looking to double market capi...
The Hindu Business Line  Sep 28  Comment 
Amid weakening stocks, the combined market valuation of the top five Sensex companies fell by Rs 45,887.6 crore last week, with RIL and ICICI Bank taking the biggest hit. While TCS, RIL,...
The Economic Times  Sep 26  Comment 
Shares of JP Associates declined nearly 20% to end at Rs 25.75 on Thursday, its lowest closing in more than nine years.


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.

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