Glossary
Market Capitalisation
Total dollar value of a company's outstanding shares.
Market cap = Share Price × Shares Outstanding. It measures the equity value the public market currently assigns to a firm, and it changes every time a share trades.
Conventional buckets: large-cap above $10B, mid-cap $2B–$10B, small-cap $300M–$2B, micro-cap below $300M. Index inclusions in the S&P 500 or Russell 2000 are gated on market-cap thresholds, so crossing a boundary can trigger forced index buying or selling.
Market cap is not the same as enterprise value, which adds net debt. EV is the better proxy for the cost of acquiring the entire business.