Market Cap 🧢 or Capitalization is the total shares held by shareholders of a company in dollars. To get the Market Cap, you multiply the current share price into total outstanding shares. Market Caps are used to understand how much a company is worth and where they stand financially.
Companies are divided into large-cap, mid-cap and small-cap based on their value. Generally speaking, large-cap companies make for safer investments owing to their stability and history. Even if share prices are lower, if the total number of outstanding shares are more, the company would have a large market cap. Whereas a company that has high share prices, but has fewer outstanding shares, would have a lower market cap.
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