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Market capitalization (market cap) is calculated by multiplying share price by total shares outstanding. It represents the total value investors place on a company.
Companies are categorized as large-cap (>$10B), mid-cap ($2-10B), small-cap ($300M-2B), and micro-cap (<$300M).
Market cap affects index inclusion, ETF weighting, and institutional investor interest.
Understanding market capitalization helps you make better investment decisions and plan for taxes. Explore related concepts below to deepen your knowledge.