What does Market Cap mean?

Market Capitalization, more commonly referred to as Market Cap is the total dollar market value of a particular company. This is calculated by multiplying the total number of outstanding shares of the company by the current market price of a single share.

In other words, this is an estimate of how much a company is worth as determined by the stock market.

Market Cap can also be used to describe an industry, rather than a single company. In that case, the market cap refers to the combined market cap of each company operating within that industry.

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