Glossary
Market capitalization is the total market value of a company's outstanding shares, calculated as share price times shares outstanding.
Market capitalization, or market cap, is share price multiplied by the number of shares outstanding. A company trading at $50 with 100 million shares has a market cap of $5 billion. It is the market's running estimate of what the equity is worth in aggregate.
Market cap is the standard way to size a company and to group companies into large-, mid-, and small-cap buckets. It is not the same as enterprise value, which also accounts for debt and cash, nor is it the price an acquirer would pay to take the whole company.
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