What does market cap mean? What is the market capitalization of a stock? You may also be wondering what the difference is between a small cap, mid cap and large cap stock. All this and more will be explained in this video about market cap or market capitalization of a stock. Companies or funds are often referred to as small cap, mid cap or large cap. The cap stands for capitalization, which is a measurement used to determine the size of a company. There are no set rules on what constitutes a small, mid or large cap company but most agree on the figures we will discuss below. MY EBOOK! http://ift.tt/2hEDQ8j Market Cap or Market Capitalization is useful in figuring out the size of a company as well as the overall riskiness of the company. Market Cap is the market value of the company’s outstanding shares, and it is calculated by multiplying the outstanding shares by the price per share. Outstanding shares are the stock currently held by all shareholders, both public and private. Market Capitalization is a derivative of price. As such, it changes relative to the stock price. Here are the “Generally Accepted” Market Cap Guidelines: “Mega Cap” — Over $200B, typically the leaders of the industry. “Large Cap” — $10B to $200B, relatively stable companies, up and coming leaders. “Mid Cap” — $2B to $10B, typically newer companies, more volatility common, often growth stocks. “Small Cap” — $300M to $2B, higher risk and higher potential capital appreciation. “Micro Cap” — $50M to $300M, typical of penny stock companies, high risk potential. “Nano Cap” — Under $50M, very high risk of failure, typical of pink sheet or OTCBB stocks. Market Cap or market capitalization essentially tells you the size of the company. By determining the size of the company, you can determine what market cap category it falls into. This will help you to determine the overall risk of an investment in that company. Market Cap is one of the most important concepts to understand about stock market investing. Website http://ift.tt/2hWvg0t Follow me on Twitter! https://twitter.com/RyanOScribner Facebook! http://ift.tt/2k1uEsg Personal Fitness Coaching http://ift.tt/2hEScp0 Related Videos: Market Capitalization Meaning: Why Price Doesn’t Always Equal Value https://www.youtube.com/watch?v=qs23SedKvKA Understanding Market Cap | by Wall Street Survivor https://www.youtube.com/watch?v=_JNlku5xy9Q Related Articles: Market Capitalization | Investopedia http://ift.tt/18VsD22 Market Capitalization Meaning: Why Price Doesn’t Always Equal Value http://ift.tt/2orGm0v If this video brought value to you, please leave a like! If you are looking to find out more about anything I discussed, drop me a comment or contact me on Twitter. Subscribe to be updated on my journey through life!
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