What Is Market Capitalization?
By Allen Krewzz
%22%20%2F%3E%3Cg%20transform%3D%22translate(140%2C160)%20scale(7.083333333333333)%22%20stroke%3D%22%232454d6%22%20stroke-width%3D%221.6%22%20fill%3D%22none%22%20stroke-linecap%3D%22round%22%20stroke-linejoin%3D%22round%22%3E%3Cellipse%20cx%3D%2212%22%20cy%3D%2213%22%20rx%3D%228%22%20ry%3D%226%22%20%2F%3E%3Ccircle%20cx%3D%2218%22%20cy%3D%2210.5%22%20r%3D%220.8%22%20%2F%3E%3Cline%20x1%3D%229%22%20y1%3D%227.5%22%20x2%3D%2212%22%20y2%3D%227.5%22%20%2F%3E%3Cline%20x1%3D%226%22%20y1%3D%2217%22%20x2%3D%226%22%20y2%3D%2220%22%20%2F%3E%3Cline%20x1%3D%2216%22%20y1%3D%2217%22%20x2%3D%2216%22%20y2%3D%2220%22%20%2F%3E%3Cpath%20d%3D%22M20%2C12%20L23%2C11%20L23%2C15%20Z%22%20%2F%3E%3C%2Fg%3E%3Cg%20transform%3D%22translate(460%2C140)%20scale(6.25)%22%20stroke%3D%22%2312224d%22%20stroke-width%3D%221.6%22%20fill%3D%22none%22%20stroke-linecap%3D%22round%22%20stroke-linejoin%3D%22round%22%3E%3Crect%20x%3D%226%22%20y%3D%222%22%20width%3D%2212%22%20height%3D%2220%22%20%2F%3E%3Cline%20x1%3D%229%22%20y1%3D%227%22%20x2%3D%2215%22%20y2%3D%227%22%20%2F%3E%3Cline%20x1%3D%229%22%20y1%3D%2211%22%20x2%3D%2215%22%20y2%3D%2211%22%20%2F%3E%3Cline%20x1%3D%229%22%20y1%3D%2215%22%20x2%3D%2213%22%20y2%3D%2215%22%20%2F%3E%3C%2Fg%3E%3Ctext%20x%3D%2260%22%20y%3D%2260%22%20font-family%3D%22Helvetica%2C%20Arial%2C%20sans-serif%22%20font-size%3D%2220%22%20font-weight%3D%22700%22%20letter-spacing%3D%222%22%20fill%3D%22%232454d6%22%3EINVESTING%3C%2Ftext%3E%3C%2Fsvg%3E)
How Market Cap Is Calculated
The Standard Market Cap Categories
Why Market Cap Affects Risk and Volatility
Market cap isn't the same as company revenue: A company's market cap reflects what investors are willing to pay for future profits, not its current sales figures. A smaller-revenue company with strong growth expectations can carry a larger market cap than a bigger, slower-growing business.