Market capitalization is a term commonly used in the world of finance. It refers to the total value of a company's outstanding shares. This is calculated by multiplying the current stock price by the total number of outstanding shares. It is a key indicator of a company's size and overall value. As investors, it is important to understand market capitalization as it can influence investment decisions. Companies with a higher market cap are generally considered more stable and less risky, while those with a lower market cap may offer higher potential for growth but also carry a higher risk. Understanding market capitalization is essential for making informed investment choices.
