Marketcapitalizationweighted
Market capitalization, often shortened to market cap, is a financial metric used to determine the total value of a publicly traded company's outstanding shares. It is calculated by multiplying the current market price of a single share by the total number of shares that have been issued and are currently held by investors. For example, if a company has 10 million shares outstanding and each share is trading at $50, its market capitalization would be $500 million (10 million shares * $50/share).
Market cap is a widely used indicator for assessing the size of a company. Companies are typically
Investors use market capitalization as a factor in their investment decisions, alongside other metrics like revenue,