Market Capital

Market Capital - Market Capital is the total of all of a firm's outstanding shares, calculated by multiplying the market price per share times the total number of shares outstanding. For example, at a current price of fifty dollars for each of its twenty million shares of outstanding stock, a firm has a market capitalization of fifty dollars times twenty million or one billion dollars it is one of the criteria investors use to chose a varied portfolio of stocks, which categorize as the small, mid, and large cap. Generally large cap stocks considered the least volatile, and small caps the most volatile.