Ever wondered how much a company is worth? 🤔
Well, market capitalization can answer that in terms of the stock market
Market Capitalization (Market Cap) = Total value of a company in the stock market
🧮 Market cap = price of 1 share✖️total outstanding shares
Market cap can be calculated for any publicly traded company 📈
Market cap is used to determine the size of a company compared to others 📊
There are 4️⃣ categories of market capitalization
Small cap, mid cap, large cap, and mega cap 📂
Small cap = $300 million to $2 billion 🌱
Growing companies that are often less established and risker 🤔
Mid cap = $2 billion to $10 billion 🪴
Slightly more established, with slightly less growth potential 🔍
Large cap = $10 billion to $200 billion 🌲
Often well established companies, but less growth potential 🚀
Mega cap = $200 billion and more 🚀
Most well established and sometimes have the least growth potential 🤑
Market capitalization is just one factor to consider! 💡
Now you know that total value of a company, it’s not cap I promise 🧢🤣
