What Is Market Capitalization? Definition, Formula & FAQ

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The Street

By TheStreet Staff What Is Market Cap? Market capitalization—often referred to as market cap for short—is the total market value of all of a company’s outstanding shares of stock. In other words, it is the total current worth of a company as determined by the stock market. Note: Outstanding shares include all shares issued by a company—including common stock, preferred shares, restricted shares, and those not available to the public. It does not include shares held in a company’s treasury. Investors and analysts often use a company’s market cap to discuss its size relative to other companies, …

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