Finance glossary
Market Cap
Definition
Total market value of a company outstanding shares.
Market capitalization equals share price multiplied by total shares outstanding. It is used to classify companies: large-cap above 10 billion, mid-cap 2 to 10 billion, small-cap below 2 billion. It reflects what the market thinks a company is worth right now, not what it owns or earns.
In a sentence
With a market cap above $2 trillion, the tech giant was one of the most valuable companies on earth.
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