What is a market cap?
Market capitalization is a measure of a company’s size. See how it works and how it impacts your investments at the MoneySense Glossary.
Why are mortgages so expensive in Canada?
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Market cap, short for market capitalization, is the total market value of a company’s outstanding shares, or stocks. To calculate market cap, multiple the number of shares by the market price of one share. (For example, a company with 10 million shares priced at $25 each has a market cap of $250 million.) People in the investing community use market cap to indicate a company’s value and compare its size relative to others in the same industry or sector. Stock exchanges and cryptocurrencies also have a market cap.
You may have seen the following market capitalization categories on financial news and investing websites (all figures in U.S. currency):
- Micro-cap: Market capitalization below $250 million
- Small-cap: Market capitalization between $250 million and $2 billion
- Mid-cap: Market capitalization between $2 billion and $10 billion
- Large-cap: Market capitalization between $10 billion and $200 billion
- Mega-cap: Market capitalization above $200 billion
Example: “The TSX has a market cap of over US$3 trillion.”
Read more on investing:
- Apple’s $1 trillion market cap is nothing but a number
For experts, this market cap doesn’t mean much. - What’s my RRSP contribution limit?
Putting money into a registered retirement savings plan (RRSP) is one of the best ways to save for retirement. See how much room you have left. - What do rising interest rates mean for retirement savings?
Investors are looking for relief after a tough year in the markets. Here’s what to consider while we wait for inflation and rate hikes to subside. - Video: How to minimize capital gains tax
No, you can’t avoid capital gains tax, but there are ways to lower the amount you pay. Here’s how you could save. - What can I hold in an FHSA?
When the first home savings account opens later this year, investors will have many options to grow their savings tax-free.
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