Market Capitalization

Market capitalization (market cap) represents the total market value of a company's outstanding shares. It's the simplest way to gauge a company's size and is used for index weighting, sector analysis, and risk classification.

• Mega-Cap: $200B+ (AAPL, MSFT, GOOG)
• Large-Cap: $10B-$200B (Most S&P 500 stocks)
• Mid-Cap: $2B-$10B (Growth companies, Russell Midcap)
• Small-Cap: $300M-$2B (Higher risk, higher potential return)
• Micro-Cap: Under $300M (Highest risk, most volatile)