Definition

1. Noun:
   • An estimation of the value of a business that is obtained by multiplying the number of shares outstanding by the current price of a share: Market capitalization is a financial metric used to determine the total market value of a publicly traded company's outstanding shares.

Usage

• Market capitalization is a key indicator used by investors to categorize companies by size (e.g., large-cap, mid-cap, small-cap).
• It is calculated in real-time based on the current stock price.
• This metric represents the public's perception of a company's net worth, not its book value or asset value.

Examples

• Noun:
  • The company's market capitalization soared after the positive earnings report.
  • Investors often compare the market capitalizations of firms within the same industry.
  • With a market capitalization of over $2 trillion, it is one of the world's most valuable companies.

Advanced Usage

• "To have a market capitalization of": To be valued at a specific amount by the stock market.
  • The startup aims to have a market capitalization of $1 billion within five years.
• "Market cap": A common abbreviated form used in financial discourse.
  • The fund only invests in companies with a large market cap.

Variants and Related Words

• Market cap (n): The common abbreviated form of market capitalization.
• Market capitalisation (n): The British English spelling variant.
• Market value (n): A broader term that can refer to the market capitalization of a company or the value of an asset in the marketplace.

Synonyms

• Market value: The price at which an asset would trade in a competitive auction setting; often used interchangeably with market cap for equity.
• Equity value: The value of a company's equity, which is typically synonymous with its market capitalization.

Related Phrases

• Large-cap: Referring to a company with a large market capitalization, typically over $10 billion.
  • Large-cap stocks are generally considered more stable investments.
• Mid-cap: Referring to a company with a medium market capitalization, typically between $2 billion and $10 billion.
• Small-cap: Referring to a company with a small market capitalization, typically between $300 million and $2 billion.

Noun

1. an estimation of the value of a business that is obtained by multiplying the number of shares outstanding by the current price of a share