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Finance Dictionary and Glossary of Investment Terms
Market Capitalization
Definition 1.
The total dollar value of all outstanding shares. It's calculated by multiplying the number of shares times the current market price. This term is often referred to as market cap.
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Definition 2.
Market capitalization
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Definition 3.
The value of a company''s outstanding shares, as measured by shares times current price. Speaking very generally, the larger the market capitalization, the safer the company. Firms with very small market capitalizations can be unusually risky. Everyone''s definition differs, but here is a general-purpose breakdown of market capitalization categories:Giant cap. = over $25 billionLarge cap. = $5 billion to $25 billionMedium cap. = $1 billion to $5 billionSmall cap. = $250 million to $1 billionMicro cap. = Under $250 millionNote: For foreign companies, market capitalization is based on ADR shares and does not correspond to the actual market cap in their homeland. For more information, see American Depositary Receipt (ADR)
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Definition 4.
The price of a stock multiplied by the total number of shares outstanding. Also, the market's total valuation of a public company.
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