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What Is Market Cap In Stocks?

Here is a brief guide to help you better understand what is market cap in stocks.

Market Capitalization (Cap) Definition

If you’re new to the stock market, you’ve likely been overwhelmed with all the stock market terms that investors use. In this article, we’re going to discuss what is market capitalization or market cap in stocks.

Dy definition, market capitalization is the value of a company that is traded on the stock market. Simply put, Market cap, or market capitalization, is a measure of the value of a publicly traded company’s shares.

How To Understand Market Capitalization (Cap)

In order to understand market cap, it is important to first understand what the stock market is. The stock market is a collection of all the stocks that are being traded on the stock exchange. The stock exchange is where companies list their stocks and investors can buy and sell them.

Understanding market cap is important for understanding the overall value of a company. It also helps us compare companies within the same industry. It can also be useful for understanding the risk involved in investing in a particular company. A high market cap indicates that a company is large and stable. On the other side, a low market cap indicates that a company is small and riskier. Knowing the market cap can help you make informed investment decisions.

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How To Calculate Market Capitalization (Cap)

Now we know now that the market cap is a measure of the value of a publicly traded company’s shares. Market cap is calculated by multiplying the number of shares outstanding by the current market price per share. For example, if a company has 1 million shares outstanding with a share price of $20, the market cap would be $20 million.

Additionally, the market cap is often used to categorize companies by size. Specifically, large-cap companies have a market cap of $10 billion or more. While small-cap companies have a market cap of less than $2 billion.

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Bottom Line

Though market cap is a useful metric, it should not be the only factor to consider when making investment decisions. A company with a large market cap may be overvalued by the market, while a small-cap company may be undervalued.

In addition, the market cap does not take into account other important factors. This includes the company’s financial health, competitive advantage, and growth potential to name a few. As such, it is important to consider all available information when making investment decisions.

Below you will find a list of the 10 largest publicly traded companies in order by market cap. The current share price is as of Friday, August 12, 2022 afternoon.

  1. Apple, Inc. (NASDAQ: AAPL)
    • Market Cap: $2.762 Trillion
    • Current Share Price: $171.90
  2. Microsoft Corporation (NASDAQ: MSFT)
    • Market Cap: $2.169 Trillion
    • Current Share Price: $290.95
  3. Alphabet (NASDAQ: GOOG)
    • Market Cap: $1.591 Trillion
    • Current Share Price: $122.48
  4., Inc. (NASDAQ: AMZN)
    • Market Cap: $1.455 Trillion
    • Current Share Price: $142.84
  5. Tesla, Inc. (NASDAQ: TSLA)
    • Market Cap: $938.51 Billion
    • Current Share Price: $898.54
  6. Berkshire Hathaway (NYSE: BRK.B)
    • Market Cap: $661.45 Billion
    • Current Share Price: $300.34
  7. UnitedHealth Group, Inc. (NYSE: UNH)
    • Market Cap: $506.05 Billion
    • Current Share Price: $541.01
  8. Meta Platforms Inc. (NASDAQ: META)
    • Market Cap: $484.45 Billion
    • Current Share Price: $180.26
  9. Taiwan Semiconductor Manufacturing Co. Ltd (NYSE: TSM)
    • Market Cap: $472.06 Billion
    • Current Share Price: $91.03
  10. NVIDIA Corporation (NASDAQ: NVDA)
    • Market Cap: $464.23 Billion
    • Current Share Price: $186.29

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By Josh Dylan

Josh Dylan is an active contributor to His forte is in geosocial events and emerging trends in the stock market today. As an active contributor to other financial outlets like, his ability to study current events and determine the potential market reaction is what sets him apart from other writers.

After studying at UC Santa Cruz and earning a bachelor's of art and art history, Josh also went on to start his own business in art resale. Identifying underserved niches like this has allowed him to think outside the box when it comes to applying this approach to the stock market.

His new-age take on social media and branding gave Josh the foresight to apply certain lifestyle trends to market moving topics. This has included the recent trend in the cannabis industry and marijuana stocks as well as following emerging technology such as artificial learning and web-bots. Fundamentals are just as important as momentum in Josh’s opinion. Being able to understand how to apply popular trends to investing is of major importance. If the price of oil is sinking but the price of gold is following along, we want to understand why, not just follow the broader trend.

Josh Dylan makes it a point to not only mention what hot “today” but also find ways to apply that to find future opportunity in the stock market. What’s more is that Josh has become an active part in the social media team. He works to delivery top research not only one but also bring it to the readers, directly.

By studying the macro-economic events in the market, Josh makes sure to find events that could shift micro-economic trends. He prides himself on taking a unique approach to information but not taking things for “face value”. When it comes to the stock market, things can change at a moment’s notice and Josh makes sure to stay ahead of that with sound research and diligence. When Josh isn’t writing about the stock market, he enjoys spending time with his family and surfing. He currently calls Southern California his home.

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