What is a company's market cap?

Market cap—or capitalization—refers to the total value of all a company's shares of stock. Knowing a company's market cap can help you compare the relative size of one company versus another.

What is the difference between market capitalization and market cap?

Market capitalization is the total dollar value of all outstanding shares of a company at the current market price. Market cap is used to size up corporations and understand their aggregate market value. Companies may be categorized as large-, mid-, or small-cap depending on their market capitalization.

What are the common market-cap categorizations for companies based on their size?

Here are the common market-cap categorizations for companies based on their size: A nano-cap stock is a company with a market cap between $0M — $50M. A micro-cap stock is a company with a market cap between $50M — $300M. A small-cap stock is a company with a market cap between $300M — $2B.

How is market cap calculated?

Since it represents the “market” value of a company, it is computed based on the current market price (CMP) of its shares and the total number of outstanding shares . Market cap is also used to compare and categorize the size of companies among investors and analysts.