Market Capitalization

Market Capitalization (or Market Cap) represents the total dollar value of a company's outstanding shares. It is calculated by multiplying the current share price by the total number of shares outstanding.

Companies are typically categorized by their market cap into the following groups:

• Mega-cap: Over $200 billion
• Large-cap: $10 billion to $200 billion
• Mid-cap: $2 billion to $10 billion
• Small-cap: $300 million to $2 billion
• Micro-cap: $50 million to $300 million

Generally, larger market cap companies are considered more stable but may offer less growth potential, while smaller companies may be riskier but offer higher growth possibilities.