Tradersguruji

  Definition & Examples of Market Capitalization Market capitalization is the total value of a company's shares of stock. It's used to compare company sizes, which helps investors evaluate risk and return potential. Learn the market cap definition, how it works, and how to use it to inform your investing decisions. What Is Market Capitalization? Put simply, stock market capitalization is the amount of money it would cost you to buy every single share of stock a company had issued at the current market price. This metric is useful for comparing the size of one company to another. There are also certain benefits and risks associated with investing in companies of certain sizes, so investors may want to focus on a particular company size, like large-cap companies, or diversify by having small-, mid-, and large-cap companies in their portfolio. How Market Capitalization Works Market capitalization includes all available shares in the market. It doesn't include locked...