Basics

Market Capitalization is the total value of a company’s outstanding shares and the current price per share.  It goes from Large Cap, the big boys - the largest companies, to Micro Cap, the small ones just getting off the ground. These are the commonly used dollar amounts, although some investors and analysts use different dollar amounts, when discussing market capitalization.  Some even speak about Mega Capitalization, companies valued over $100 billion.



 

MARKET SIZE CAPITALIZATION

Large Cap Over $5 billion
Medium Cap $1 to $ 5 Billion
Small Cap $250 million to $1 Billion
Micro Cap Under $250 Million

Most of the market Indexes are based on market capitalization.  I have tried to give you an example of a few companies in each that you may be familiar with.