Market capitalization, commonly known as "market cap," is a measure of the value of a publicly traded company. It is calculated by multiplying the number of a company's outstanding shares of stock by its current market price per share. Market capitalization is used as an indicator of a company's size and is a useful tool for investors to compare different companies in the same industry. Market capitalization is often used to categorize companies into different size groups, such as large-cap (typically companies with a market cap of $10 billion or more), mid-cap ($2 billion to $10 billion), and small-cap (less than $2 billion). The market capitalization of a company can change over time as the company's stock price and number of outstanding shares change. Market capitalization is a useful tool for investors to get a quick estimate of a company's value, but it is important to keep in mind that it does not take into account the company's financial health or future growth potential.
