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)