Original: Market capitalization ( often market cap ) is a measurement of size of a business enterprise ( corporation ) equal to the share price times the number of shares outstanding ( shares that have been authorized , issued , and purchased by investors ) of a publicly traded company .
Simplified: Market capitalization ( often market cap ) is a measurement of size of a business corporation . It is equal to the price of one share of stock , times the number of shares of stock in a public company .