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What Is Market Capitalisation?

Definition and plain-English explanation of "Market Capitalisation"

Market Capitalisation — Basics illustration

Market capitalisation (market cap) is the total value of a company's outstanding shares. It is calculated by multiplying the current stock price by the total number of shares outstanding. Companies are categorised as large-cap (over $10 billion), mid-cap ($2–10 billion), or small-cap (under $2 billion). A higher market cap generally indicates a larger, more established company.

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