Market capitalization

Market capitalization ('market cap') is the current stock-market value of an entire company. It equals share price × number of all issued shares. Example: A firm has 100 million shares, each trading at $50. Market cap = $5 billion. How to read it: Companies are grouped by size — large caps (above ~$10bn), mid caps (~$2–10bn), small caps (< $2bn). Large ones tend to be less volatile; small ones can grow faster but carry more risk. Watch out: Market cap does not tell you whether a stock is cheap — only what the market pays for the whole company. Valuation ratios like P/E or P/S say more about price.