Basic Concepts
Market Cap
Market Capitalization
Definition
Stock Price × Total Shares Outstanding = Company's market value
Explanation
Market capitalization is the total value of a company as determined by the stock market. It's calculated by multiplying the current stock price by the total number of outstanding shares. Large-cap (>$10B), mid-cap ($2B-$10B), and small-cap (<$2B) classify companies by size.
Example
Stock price $150 × 16 billion shares = $2.4 trillion market cap (Apple)