Ever wondered how much a company is worth? 🤔

Well, market capitalization can answer that!

💡 Market capitalization (market cap) = the total value of a company in the stock market

It's calculated by multiplying the price of 1 share by the total number of outstanding shares

Every publicly traded company has a market cap 📈

You can compare a company's size against others by using its market cap 📊

There are 4️⃣ rough buckets of market cap size

Small cap, mid cap, large cap, and mega cap 📂

Small cap = $300 million to $2 billion 🌱

These are growing companies that are often less established and risker 🤔

Mid cap = companies worth $2 billion to $10 billion 🪴

These are slightly more established, with slightly less growth potential 🔍

Large cap = companies worth $10 billion to $200 billion 🌲

These are often well-established companies but with less growth potential 🚀

Mega cap = companies worth $200 billion and more 🚀

These are mostly well-established and typically have the least growth potential 🤑

In general, the bigger a company's market cap is, the less risky it is 🛑

This is because it's less likely for a $100 billion company to go to $0, than for a $100 million company to go to $0