A company’s MARKET CAPITALIZATION , aka MARKET CAP, is the total value of a company’s publicly traded stock. 

Market cap equals the number of publicly traded shares multiplied by the current share price. SO, let’s say a company with 10 million shares outstanding and a share price of $10. This company would have a market cap of $100 million.

The market cap fluctuates as it’s price moves up and down.

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Mid-cap Stocks: Companies with market caps of $2-$10 billion. Hilton Hotels is an example.

 

-the range can vary

Micro-cap Stocks: Companies with market caps under $100 million. These stocks are typically traded on markets other than the NASDAQ,  NYSE, or AMEX.

(please note that this range can vary)

Small-cap Stocks: Companies with market caps of $100 million-$2 billion. Chances are likely you wont know these companies. Some of you will though =)  Smaller-cap stocks tend to be more risky, but often have higher prospects for growth, allowing for higher returns. 

(please note that this range can vary)

Large-cap stocks: Companies with market caps of $10-$100 billion. Large-caps are also generally household names like Apple.  Large-cap stocks tend to be less risky, but usually offer less chance of huge growth and success (since they’re already so big)

(please not that this range can vary)

Mega-Cap Stocks: giant compaines with market caps over $100 billion. General Electric and Microsoft are examples. Mega-caps, along with some large-caps, are also known as blue-chip stocks.

(please note that this range can vary)

Based on the size of a company’s market cap, a stock can be placed into 5 general groups (these ranges can change).

*Mega-Cap Stocks: giant compaines with market caps over $100 billion. General Electric and Microsoft are examples. Mega-caps, along with some large-caps, are also known as blue-chip stocks.

*Large-cap stocks: Companies with market caps of $10-$100 billion. Large-caps are also generally household names like Apple.  Large-cap stocks tend to be less risky, but usually offer less chance of huge growth and success (since they’re already so big)

*Mid-cap Stocks: Companies with market caps of $2-$10 billion. IE-Hilton Hotels.

*Small-cap Stocks: Companies with market caps of $100 million-$2 billion. Chances are likely you wont know these companies. Some of you will though =)  Smaller-cap stocks tend to be more risky, but often have higher prospects for growth, allowing for higher returns. 

*Micro-cap Stocks: Companies with market caps under $100 million. These stocks are typically traded on markets other than the NASDAQ,  NYSE, or AMEX.