Market Capitalisation
![Market Capitalisation](/content/images/size/w1200/2023/03/Market-Capitalisation.jpg)
Market Capitalization (market cap) is the total value of a publicly traded company's outstanding shares of stock. It is calculated by multiplying the current stock price by the number of shares outstanding. Market capitalization is often used as a measure of a company's size. It is often used to classify companies into different groups, such as small-cap, mid-cap, and large-cap.
Market capitalization, also known as market cap, is a measure of the value of a publicly traded company. It is calculated by multiplying the total number of shares outstanding by the current market price per share. Market cap is often used as an indicator of a company's size and is often used to classify companies into different groups, such as small-cap, mid-cap, and large-cap.
Small-cap companies typically have market caps of less than $2 billion, while mid-cap companies have market caps between $2 billion and $10 billion. Large-cap companies, on the other hand, have market caps greater than $10 billion.
Market cap is an important metric for investors as it gives an idea of the company's potential for growth and can also be used to compare companies in the same industry. However, it should be used in conjunction with other financial metrics, such as earnings and revenue, to get a complete picture of a company's financial health.
It is the total value of a company in the market. It is the amount invested in a company by its shareholder. It is calculated by multiplying the total number of outstanding shares by the current market price of that company’s stock. Suppose a company ABC Ltd. has 20,000 outstanding shares and the current trading price of that company’s stock is Rs. 10/-, then the company’s market capitalization is 20,000*Rs.10 = Rs.20,000.