Basics

What is Market Cap?

Total value of a company

Full Explanation

Multiply the stock price by the number of shares. That's how much the entire company is worth according to the market.

Real-World Example

Stock at $100 × 1 billion shares = $100B market cap

Pro Tip

Common convention: under ~$2B = small-cap, $2B–$10B = mid-cap, over $10B = large-cap. Definitions vary — Russell and S&P use different thresholds that shift with each index rebalance.

Related Basics Terms

Ticker Symbol

The short code used to identify a stock

Sector

A group of companies in the same type of business

Bull Market

When stocks are going up

Yield

The income you earn on an investment as a percentage

View all Basics terms →

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