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Investing

Market Capitalization

The total value of a company's shares — its share price multiplied by shares outstanding.

Market capitalization (market cap) is the combined market value of all a company's shares. It is used to size companies as large-, mid- or small-cap, and index funds often weight their holdings by market cap.

Examples

  • A company with 10 million shares priced at $50 has a $500 million market cap.

Related terms

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