Market Cap Categories Definition

What is Market Cap

Market capitalization, or market cap, is the combined value of a company’s outstanding stock. It is an estimate of the total value of a company.

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Market Cap Categories

People often divide companies into different size categories based on their market caps:

  • Micro-cap: Market cap under $300 million.
  • Small-cap: $300 million to $2 billion.
  • Mid-cap: From $2 billion to $10 billion.
  • Large-cap: Greater than $10 billion.

Some have also used the terms mega-cap to refer to companies over $200 billion, and nano-cap for companies under $50 million.

However, there are no exact definitions for any of these categories, so the cutoffs can vary greatly.

Market Capitalization | Market Capitalization Categories FAQs

Market Cap is short for Market Capitalization.
Market Capitalization is the aggregate dollar-value of all outstanding shares of a company’s stock.
A company’s market cap is the first way an investor assesses how “big” a company is.
It is important to remember that a company’s market cap may be different than the true economic worth of their assets and ability to generate profits—market cap can be viewed as what the markets perceive a company to be worth.