Market Cap

Short for market capitalization, it represents the total market value of a company's outstanding shares, calculated by multiplying the share price by the number of shares outstanding. Market cap is the primary way investors categorize companies by size: micro cap (under $300 million), small cap ($300 million to $2 billion), mid cap ($2 billion to $10 billion), large cap ($10 billion to $200 billion), and mega cap (above $200 billion). It is a more meaningful measure of a company's size than share price alone.