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What Is Market Cap?

The total value of a company

Market capitalisation = share price × total shares outstanding. It tells you the company's total market value. Apple at $3 trillion is a mega-cap. A startup worth $500M is a small-cap. Large-cap companies tend to be more stable; small-caps can grow faster but are riskier.

Quick check

A company has 10 million shares priced at $50 each. What is its market cap?