The Ultimate Guide to Market Capitalization: Understanding a Company's Worth

What is Market Capitalization?

Market capitalization (market cap) is a fundamental metric used to measure the size and value of a publicly traded company. It represents the total dollar value of all outstanding shares of a company's common stock. Market cap is calculated by multiplying the number of shares outstanding by the current market price of the stock.

Key Metrics and Calculations

Market cap is a key indicator of a company's market presence and value. It can be used to:

• Rank companies by size and scale
• Estimate a company's worth and potential
• Determine the liquidity of a company's stock