Market Capitalization
Financial term in the Investing category
Definition
The total market value of a company's outstanding shares, calculated by multiplying share price by number of shares. Categories include small-cap, mid-cap, and large-cap.
Related Terms
Stock
A share of ownership in a company. When you buy stock, you become a partial owner with potential to earn money through price appreciation and dividends.
Blue-Chip Stock
Stock in a large, well-established, and financially sound company with a history of reliable performance. Examples include Apple, Microsoft, and Johnson & Johnson.
Frequently Asked Questions
What is Market Capitalization?
The total market value of a company's outstanding shares, calculated by multiplying share price by number of shares. Categories include small-cap, mid-cap, and large-cap.
Why is Market Capitalization important in personal finance?
Market Capitalization is an important investing concept that helps individuals make better financial decisions. Understanding Market Capitalization can improve your financial planning and help you achieve your money goals.
How does Market Capitalization relate to Stock?
Market Capitalization and Stock are related financial concepts. A share of ownership in a company. When you buy stock, you become a partial owner with potential to earn money through price appreciation and dividends.
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