Now we know now that the market cap is a measure of the value of a publicly traded company’s shares. Market cap is calculated by multiplying the number of shares outstanding by the current market price per share. For example, if a company has 1 million shares outstanding with a share price of $20, the market cap would be $20 million.
What is the market capitalization of ABC Corp?
For example, if ABC Corp. trades at $30 per share and had one million outstanding shares, its market capitalization would be ($30 x 1 million shares) = $30 million. Since the market price of shares of a publicly-listed company keeps changing with each passing second, the market cap also fluctuates accordingly.
Why does the market cap change?
Essentially, the changes in market cap are largely attributed to the share price changes, though investors should keep an eye on corporate-level developments that may change the number of outstanding shares once in a while.
What is the market capitalization of a mid-cap company?
Mid-cap companies generally have a market capitalization of between $2 billion and $10 billion. Mid-cap companies are established companies that operate in an industry expected to experience rapid growth. Mid-cap companies are in the process of expanding.
