Market Capitalization
A measure of a public company's size. Market capitalization is the total dollar value of all outstanding shares. It's calculated by multiplying the number of shares times the current market price. This term is often referred to as "market cap".
Investopedia Commentary
Brokerages vary on their exact definitions, but the current approximate classes of market capitalization are:
Mega Cap: Market cap of $200 billion and greater
Big/Large Cap: $10-$200 billion
Mid Cap: $2 billion to $10 billion
Small Cap: $300 million to $2 billion
Micro Cap: $50 million to $300 million
Nano Cap: Under $50 million
Keep in mind that there is no authoritative set of guidelines for distinguishing small caps from large caps. For example, the Investment Company Institute (an association of investment companies) provides the following classes:
Small Cap: Less than $1 billion
Mid Cap: $1 billion to $5 billion
Large Cap: Over $5 billion
In some parts of the world, this can be spelled "market capitalisation".
Related Links
Market Capitalization Defined
The Great Gap
See also: Large Cap, Market Value, Mega Cap, Micro Cap, Mid Cap, Nano Cap, Outstanding Shares, Small Cap, Weighted Average Market Capitalization
Also spelled: market cap
market capitalization