market capitalization
DefinitionMCAP. Market capitalization represents the aggregate value of a company or stock. It is obtained by multiplying the number of shares outstanding by their current price per share. For example, if XYZ company has 15,000,000 shares outstanding and a share price of $20 per share then the market capitalization is 15,000,000 x $20 = $300,000,000. Generally, the U.S. market recognizes three market cap divisions: large cap (usually $5 billion and above), mid cap (usually $1 billion to $5 billion), and small cap (usually less than $1 billion), although the cutoffs between the categories are not precise or fixed. In our example above, XYZ would be considered a small cap company. also called market cap.
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... part of the Bonds, Earnings, Stocks and Investor Relations subjects.
... part of the Bonds, Earnings, Stocks and Investor Relations subjects.
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Related Terms
earnings multiple, enterprise value, intrinsic value, listing requirements, medium-cap, Nasdaq Composite Index, P/E ratio, price/earnings ratio, reverse split, Russell 2000 and
market capitalization appears in the definitions of these other terms on BusinessDictionary.com
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