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Market capitalization

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Title: Market capitalization  
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Subject: Canadian petroleum companies, Equity value, Public float, PSI-20, Stock exchange
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Market capitalization

The New York Stock Exchange on Wall Street, the world's largest stock exchange per total market capitalization of its listed companies.[1]

Market capitalization (or market cap) is the total value of the shares outstanding of a publicly traded company; it is equal to the share price times the number of shares outstanding.[2][3] As outstanding stock is bought and sold in public markets, capitalization could be used as a proxy for the public opinion of a company's net worth and is a determining factor in some forms of stock valuation.

The total capitalization of [5]


  • Market cap terms 1
  • Related measures 2
  • See also 3
  • References 4
  • External links 5

Market cap terms

Traditionally, companies were divided into large-cap, mid-cap, and small-cap.[2] The terms mega-cap and micro-cap have also since come into common use,[6][7] and nano-cap is sometimes heard. Different numbers are used by different indexes;[8] there is no official definition of, or full consensus agreement about, the exact cutoff values. The cutoffs may be defined as percentiles rather than in nominal dollars. The definitions expressed in nominal dollars need to be adjusted over the decades due to inflation, population change, and overall market valuation (for example, $1 billion was a large market cap in 1950, but it is not very large now), and they may be different for different countries.

Related measures

Market cap reflects only the equity value of a company. It is important to note that a firm's choice of capital structure has a significant impact on how the total value of a company is allocated between equity and debt. A more comprehensive measure is enterprise value (EV), which includes debt, preferred stock, and other factors. Insurance firms use a value called the embedded value (EV).

See also


  1. ^ "Market highlights for first half-year 2010". World Federation of Exchanges. Retrieved May 29, 2013. 
  2. ^ a b "Market Capitalization Definition". Retrieved 2 April 2013. 
  3. ^ "Financial Times Lexicon". Retrieved 19 February 2013. 
  4. ^ Global stock values top $50 trln: industry data (Reuters)
  5. ^ a b WFE Report Generator including report for Domestic Market Capitalization 2008 (World Federation of Exchanges)
  6. ^ "Mega Cap Definition". Retrieved 2 April 2013. 
  7. ^ "Micro Cap Definition". Retrieved 2 April 2013. 
  8. ^ Definition of Market Capitalization

External links

  • How to Value Assets – from the Washington State (U.S.) government web site
  • Year-end market capitalization by country – World Bank, 1988–2010
  • Equity and Bond Capitalizations G20 – Equity and bond capitalization for the G20
  • Comparative Explanation - Share Count: Authorized, Outstanding And Float
  • Market cap filter for global public companies Free look up of current market capitalization
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