Investor Glossary-market capitalizationInvestor Glossary-market capitalizationInvestor Glossary-market capitalizationInvestor Glossary-market capitalizationInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Market Capitalization

The HTML to link to this page
 

Market capitalization is the number of shares outstanding times the stock price. In other words, market capitalization is the dollar value of all outstanding shares. Market capitalization almost always differs markedly from a company's net worth -- its nominal value -- because market capitalization is what investors are actually willing to pay for the company. Stocks are often classified by the size of their market capitalization. Companies with a market capitalization of several billion dollars or more may be considered large-cap stocks; those with a market capitalization of several hundred million to a few billion are mid-cap stocks; and those of a few hundred million or less are small-cap stocks. As a general (but by no means fixed) rule, a stock with a large market capitalization will be less subject to sharp swings in stock price, but may offer fewer opportunities for price appreciation. Note that the term market cap is widely used as shorthand for market capitalization.



Rate this market capitalization definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: inflation, stock split, required rate of return, 144a, option premium, VIX, class C shares, implied volatility, diluted share, average price per share, APR, risk management, deferred revenue, LIBOR, limit order, deferred tax, real GDP, ex-dividend, current ratio, annual return, minority interest, 1031 exchange, stock market close, FICO score, labor relations, per diem, retained earnings, quality assurance, ex-dividend date, FTSE, debt service coverage, liquidity ratio, 401a, command economy, dividends payable, Key Rate Duration, Zero Cost Collar, irrevocable trust, balance sheet, reverse mortgage, open position, 1035 exchange, phantom income, covered put, cancelled check, in escrow, EBITDA, wholly-owned subsidiary, margin rate


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Home | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2016 Investor Glossary - All rights reserved - Terms of Use