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


Home | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
Investor Glossary Index >>> # 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 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
Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
©2004-2014 Investor Glossary - All rights reserved - Terms of Use