🏦 What Is Market Capitalization (Market Cap)?
Stock Literacy • Company Valuation • Beginner Guide
Market Capitalization — or Market Cap — tells you how much a company is worth based on its stock price and number of shares outstanding 💰📊. It helps investors understand the size, stability, and risk level of a company.
How Market Cap Is Calculated 🧮
Market Cap = Stock Price × Total Shares
Example: If a stock is $100 and has 1 billion shares, its market cap is $100 billion.
Types of Market Cap 📦
- Large Cap: $10B+ (Stable & lower risk)
- Mid Cap: $2B–$10B (Balanced growth)
- Small Cap: $300M–$2B (High growth, higher risk)
- Micro Cap: $50M–$300M (Very high risk) ⚠️
Market cap does not tell you everything — but it gives great insight into a company’s scale and risk profile 📉📈.
Educational & informational only — not financial advice.
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