Market Capitalization
Also called: market cap, large cap, small cap
A company's total share value — share price times shares outstanding — used to group stocks from micro-cap to mega-cap.
Market cap = share price × shares outstanding. It sorts the market into buckets: mega- and large-caps (hundreds of billions) are stable and liquid; mid-caps balance growth and risk; small- and micro-caps are more volatile and can move fast on modest volume.
Cap interacts with float and liquidity: a small-cap with a low float and high relative volume is the classic fast-mover, while large-caps need far more buying to move. Many traders filter by market cap to match a stock's behavior to their style.
On StockSetups
Market cap is a screener field on StockSetups, and the admin filters can set a minimum so the board stays in the cap range you trade.
Related terms
See market capitalization on tonight's board.
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