What is market capitalization (Market Cap)?

By Vijay in 5 Jun 2025 | 15:47
Vijay

Vijay

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Market Capitalization, often referred to as Market Cap, is the total value of a company’s outstanding shares of stock in the market. It is used to measure a company's size and overall market value.


Formula:


Market Capitalization=Current Share Price×Total Outstanding Shares


Why is it Important?

  • Helps compare companies of different sizes

  • Indicates company stability and risk level

  • Guides investment decisions (e.g., large caps are considered more stable)

5 Jun 2025 | 15:47
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