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Glossary · Stock basics

Market cap

The total value of all a company’s shares: share price times shares outstanding.

Why it matters

Market cap tells you how big a company is in the eyes of the market. Large companies tend to move less; small ones can grow faster and fall harder.

How to read it

Rough bands: over $200B mega cap, $10B to $200B large cap, $2B to $10B mid cap, under $2B small cap.

Related

StockA small slice of ownership in a company.P/E ratioShare price divided by the last 12 months of earnings per share.

In the Cluenex app, this explanation opens next to every market cap figure, with the live reading for the stock you are looking at. Open it in Cluenex