What is a market cap?

Market cap refers to the total value of a publicly traded company's shares. Shorthand for "market capitalization," market cap is one way an investor can evaluate how much a company is worth. To determine a company's market cap, simply multiply the share price by the number of shares outstanding. Source: Getty Images

Does market cap affect share prices?

Market cap does not influence share prices. It works the other way around. Market cap is arrived at by multiplying the share price by the number of shares outstanding. So when a stock's price rises, so too does its market cap.

How do you find a company's market cap?

A company’s market cap can be found by multiplying the current stock price by the total number of outstanding shares. Outstanding shares are shares that have been issued and sold to shareholders, including those held by insiders and institutional investors.

What is market capitalization?

Dy definition, market capitalization is the value of a company that is traded on the stock market. Simply put, Market cap, or market capitalization, is a measure of the value of a publicly traded company’s shares. In order to understand market cap, it is important to first understand what the stock market is.