The basics
Market capitalization
Market capitalization is a company's total value on the market: the share price multiplied by the number of shares.
Market capitalization is a company's total value on the market: the share price multiplied by the number of shares.
Market cap is used to gauge a company's size. There are large caps (more stable) and small caps (more volatile, but with bigger move potential). It is a quick read on the risk profile.
A stock at $10 with 50 million shares has a market cap of $500 million.
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