markets

market capitalization

The total market value of a company's outstanding shares, calculated by multiplying share price by total shares.

Example

"Apple's market capitalization exceeded $3 trillion, making it the most valuable company in the world."

💡 Memory Tip

Market cap = the market's CAPITAL valuation of a company. Stock price × shares = market cap.

Etymology

Market (where trading occurs) + capitalization (total capital value) — the market's total value of a company.

Common Misspellings

market capmarket capitalzationmarket capitlizationmarket capitalisation

Related Terms

stock

See Also

shareslarge capsmall cap

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