what does market cap mean?
What Does Market Cap Mean. The market cap of a company is the total value of of company based on the last known price. It is calculated by multiplying the numbers of shares outstanding by the last known stock price. Not all companies can be valued based on its market capitalization; however this is a good method to approximate the value.
Market capitalization (or market cap) is a fairly common financial phrase. You may have seen stocks or mutual funds described as small-cap, mid-cap or large-cap on financial news websites. Or you may have read newspaper headlines referring to the market cap of a particular company, industry or region.