Learn / Fundamentals / Risk & size / Market Cap
Market Cap = Share Price × Shares Outstanding
Market cap is the total dollar value of a company’s stock. It is share price times how many shares exist — not the price you see on a quote.
01 Feel it first
Tap a size card — Micro, Small, Mid, Large, or Mega — and watch price × shares turn into one big number. That number is market cap.
At $100 a share with 1.5B shares outstanding, the company is worth $150.0B. That is Large. Large-cap. Broad coverage, liquid, the core of most indexes.
02 Break the intuition
Share price alone does not tell you size. Guess which company is larger, then reveal how many shares each one has.
03 Build the number
Toggle each chip. Price times shares is market cap. Double the share count and the pie grows while the sticker price stays put.
Price × shares is market cap. At $20 and 500M shares that is $10B. Toggle double the shares: the sticker price stays $20 but the company size doubles.
04 Sort it
Each card shows price × shares. Sort by how big the whole company is, not how the share looks.
Sort each firm by size. Ignore the share price.
Tap a card, then tap a bucket.
05 Two flavors
Same company, two ways to count. Outstanding means every share that exists. Float means only the ones that trade freely.
06 The catch
People group companies as micro, small, mid, large, or mega. The cutoffs are habits, not laws — but funds and indexes use them.
07 Check yourself
08 Where it breaks
A company can sit just under an index cutoff for years, then get added in a rebalance. The business did not suddenly grow that day — the list did.
Some companies have voting and non-voting shares. Market cap usually adds them up, but who controls the company and what freely trades can look different.
An ADR (a U.S. receipt for a foreign stock) may stand for a fraction or a bundle of home-market shares. Multiply the wrong count and you invent a fake size.
Market cap is equity only. A company with lots of debt can look “smaller” on market cap while the whole business would cost much more to buy.
Open any of 70,000 stocks and see live market cap next to price and share count. Then screen the whole market by size in one click.
Market cap is $8.0B — share price times shares outstanding. A $5 stock and a $500 stock can both be tiny or huge depending on how many shares exist.