What is a company's market cap?

Market cap—or capitalization—refers to the total value of all a company's shares of stock. Knowing a company's market cap can help you compare the relative size of one company versus another.

What is the market cap of a treasury stock?

Profit and prosper with the best of expert advice - straight to your e-mail. So, for example, if a company has 10 million shares that are issued and outstanding (i.e., are not being held by the company as treasury stock) and the stock price is $10 per share, its market cap is $100 million. At $100 per share, its market cap is $1 billion.

How is market cap calculated?

Market cap is calculated by multiplying the number of stock shares outstanding by the current share price. Shares outstanding includes all shares — those available to the public as well as restricted shares available to and held by specific groups. NerdWallet's ratings are determined by our editorial team.

What is the difference between market capitalization and market cap?

Market capitalization is the total dollar value of all outstanding shares of a company at the current market price. Market cap is used to size up corporations and understand their aggregate market value. Companies may be categorized as large-, mid-, or small-cap depending on their market capitalization.