What is the market cap of a company?

Market cap, short for market capitalization, measures a company’s value in dollar terms. This is calculated by multiplying the total number of shares of a company’s stock by the current market price of that stock. For example, a company with 100 million shares of stock with the market price of $20 per share would have a market cap of $2 billion.

What is the difference between market cap and market capitalization?

Market capitalization refers to the total dollar market value of a company's outstanding shares of stock. The investment community uses this figure to determine a company's size instead of sales or total asset figures. In an acquisition, the market cap is used to determine whether a takeover candidate represents a good value or not to the acquirer.

How do you calculate market cap?

It’s the total value of a company's outstanding shares of stock, which include publicly traded shares plus restricted shares held by company officers and insiders. To calculate market cap, you take the total number of a company's shares outstanding and multiply that figure by the company's current stock price.

What is the difference between market cap and float?

Market cap is based on the total value of all a company's shares of stock. Float is the number of outstanding shares for trading by the general public. The free-float method of calculating market cap excludes locked-in shares, such as those held by company executives and governments.