Market Capitalization

Business / Taxes / Market Capitalization: Market capitalization is a measure of the value of a company, calculated by multiplying the number of either the outstanding shares or the floating shares by the current price per share. For example, a company with 100 million shares of floating stock that has a current market value of $25 a share would have a market capitalization of $2.5 billion. Outstanding shares include all the stock held by shareholders, while floating shares are those outstanding shares that actually are available to trade. Market capitalization, or cap, is one of the criteria investors use to choose a varied portfolio of stocks, which are often categorized as small-, mid-, and large-cap. Generally, large-cap stocks are considered the least volatile, and small caps the most volatile. The term market capitalization is sometimes used interchangeably with market value, in explaining, for example, how a particular index is weighted or where a company stands in relation to other companies.

Other Words for Market

Market Adjective Synonyms: shop, store, bazaar, supermarket, superstore
Market Verb Synonyms: market-place, exchange, Stock Exchange
Market Noun Synonyms: demand, customer base, call
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Mid-Capitalization (Mid-Cap) Stock

Business / Taxes / Mid-Capitalization (Mid-Cap) Stock: A mid-cap stock is one issued by a corporation whose market capitalization falls in a range between $2 billion and $10 billion, making it larger than a small-cap stock but smaller than a large-cap sto MORE

Small-Capitalization Stock

Business / Taxes / Small-Capitalization Stock: Shares of relatively small publicly traded corporations with a total market capitalization of less than $2.3 billion are typically considered small-capitalization, or small-cap, stocks. That number is MORE

Large-Capitalization (Large-Cap) Stock

Business / Taxes / Large-Capitalization (Large-Cap) Stock: The stock of companies with market capitalizations of $10 billion or more is known as large-cap stock. Market capitalization is figured by multiplying the number of either the outstanding or the float MORE

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