MARKET CAPITALIZATION

Market valuation of all the company’s outstanding shares. To calculate market capitalization (or market cap), multiply a firm’s outstanding shares by the present market price per share. Investment industry uses the figure to evaluate the size of a corporation, against sales or total asset data. In the US, it has three market capitalization divisions: Large Cap (higher than $5 billion); Mid Cap ($5 billion to $1 billion); and Small Cap (below $1 million), although the brackets in the categories are not exact or fixed.