Market Cap Definition For Stocks

Market Capitalization, abbreviated Market Cap, is the value of a company in the market’s eyes, based on multiplying the price per share by the number of shares outstanding.

Typically, larger market cap companies are considered more stable than their smaller cap counterparts, as they are larger companies that tend to have more institutional investors.

However, many mid, small & micro-cap companies are strong investments, and attract a herd of new investors who had never heard of them when they perform well or have good news, which adds extra profits to those who are holding them.