Market capitalization usually referred to as "market cap," is the total value of a company's outstanding shares of stock. It is calculated by multiplying the current share price by the number of shares outstanding. For example, if a company has 10 million shares outstanding and the current share price is $100, the market cap would be $1 billion. Market cap is one way to gauge the size of a company. It can also be used to compare companies within the same industry. For example, a company with a market cap of $1 billion would be considered small, while a company with a market cap of $10 billion would be regarded as large. Generally, companies with a large market cap are more stable and have more resources than companies with a small market cap.