Market capitalization is a measure of the value of a company, calculated by multiplying the number of outstanding shares in the company by the current stock price. For example, a company with 100 million shares of outstanding stock at a current market value of $25 a share would have a market capitalization of $2. 5 billion. Market capitalization, or cap, is one of the criteria investors use to choose stocks, which are often categorized as small-cap, mid-cap, and large-cap. Generally, large-cap stocks are considered the least volatile, and small caps the most volatile. The term market capitalization is sometimes used interchangeably with market value.
Barry Goldsmith
| APA | Barry Goldsmith. (2010). market capitalization. Retrieved September 27, 2026, from http://smartdefine.org/market_capitalization/definitions/1157802 |
| Chicago | Barry Goldsmith. 2010. "market capitalization" http://smartdefine.org/market_capitalization/definitions/1157802 (accessed September 27, 2026). |
| Harvard | Barry Goldsmith 2010, market capitalization, Smart Define, viewed 27 September, 2026, <http://smartdefine.org/market_capitalization/definitions/1157802>. |
| MLA | Barry Goldsmith. "market capitalization" 21 October 2010. Web. 27 September 2026. <http://smartdefine.org/market_capitalization/definitions/1157802> |