Market capitalization (market cap) is a financial metric that represents the total value of a company’s outstanding shares of stock. It is calculated by multiplying the current share price by the total number of shares in circulation. Market cap serves as a key gauge of a company’s size and overall economic footprint. It is often used to classify companies into categories such as large-cap, mid-cap, and small-cap, helping investors assess the relative stability, growth potential, and risk profile of different stocks within the broader market.
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