Small Cap, Mid Cap, and Large Cap Definitions

Market capitalization refers to the total dollar market value of a company’s outstanding shares. Market capitalization is calculated by multiplying a company’s shares outstanding by the current market price of one share. Also known has “market cap.”

Investors use the market cap to determine how big or small a particular company is.

How market cap is calculated…

Market cap = Shares x stock price
32.69B = 621.29M x 52.62

Market cap is usually divided into 3 groups: small cap, mid cap, and large cap. Classifications can tend to vary by investor. The definitions follow below.

Small Cap. Refers to stocks with market cap less than 2 billion. Potential for most growth; however, institutional and fund investors usually stay away.

Mid Cap. Refers to stocks with market cap between 2 billion to $10 billion.

Large Cap. Refers to stocks with market cap more than $10 billion. Includes the heavy hitters and big players in the market.