Market capitalization - Financial definition
Financial acronyms
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Concise definition of the term market capitalization
The market capitalization of a publicly-traded company is the market value of its outstanding shares.
Comprehensive definition of the term market capitalization
Market capitalization is a measure of a company's size in terms of the total market value of its common stock.
It is calculated by multiplying the number of common stock shares outstanding by their market closing price. This means that a company's market capitalization usually varies daily.
Companies are divided into large-cap, mid-cap, and small-cap. More recently, the terms mega-cap and micro-cap have also come into common use, and nano-cap is also sometimes heard.