Market capitalization is the total value of a company or asset calculated by multiplying its price by the number of shares or units.
Market capitalization, also known as market cap, is a measure of the total value of a company or asset. It is calculated by multiplying the current market price of a share or unit by the total number of shares or units.
Market capitalization is an important metric used by investors to assess the size and value of a company or asset. It is often used to compare companies within the same industry or sector, and to make investment decisions based on the perceived growth potential and risk of a particular investment.
Market capitalization can be used to categorize companies into different size categories. For example, large-cap companies have a market cap of over $10 billion, while mid-cap companies have a market cap between $2 billion and $10 billion, and small-cap companies have a market cap of under $2 billion.
Market capitalization can be affected by a variety of factors, including changes in the price of the asset, changes in the number of outstanding shares, and fluctuations in the overall market. As such, market capitalization is not a fixed or static number, but rather a constantly evolving measure that reflects the current value and perceived potential of a company or asset.