Market Capitalization

• Market Cap = # of shares outstanding * Share price
• Represents what the market believes the dollar value of a company is.
• Companies are grouped into categories based on their Market Cap.
  • Small Cap: 300m – 2b
  • Mid Cap: 2b – 10b
  • Large Cap: 10b-200b
  • Mega Cap: +200b
• Growth companies dominate small and mid cap ranges.
• Value companies dominate the large and mega cap ranges.
• In tight credit markets, large and mega cap stocks tend to have an easier time finding credit compared to small cap companies.