market capitalization (redirected from Small capitlization stocks)

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.

Notes:

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 one authorative 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 to $5 billion
Large Cap: Over $5 billion

In some parts of the world this can be spelt as market capitalisation.

See also: Large-Cap, Market Value, Mega Cap, Micro-Cap, Mid-Cap, Nano-Cap, Outstanding Shares, Small-Cap, Weighted Average Market Capitalization

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Market capitalization

The total dollar value of all outstanding shares. Computed as shares times current market price. Capitalization is a measure of corporate size.

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market capitalization

The total value of all of a firm's outstanding shares, calculated by multiplying the market price per share times the total number of shares outstanding. For example, at a current price of $50 for each of its 20 million shares of outstanding stock, a firm has a market capitalization of $50 × 20 million, or $1 billion. Also called market value.