Accounting Dictionary - Letter M
(also called market cap) is the amount of shares outstanding multiplied by the market price per share at any given time. For example, if 10 million shares of a company are issued and outstanding and the current market price per share is $20, then the company's market capitalization is $200,000,000. Companies are divided into several categories based on their market capitalization: small cap, mid cap, and large cap.
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