Market Capitalization
InvestingThe total market value of a company's outstanding shares, calculated by multiplying share price by total shares.
Example
Example: Consider an investor building a $100,000 portfolio. Market Capitalization — the total market value of a company's outstanding shares, calculated by multiplying — directly affects investment strategy and long-term returns. Getting this concept right can mean tens of thousands of dollars in difference over a 20-year period. Model your portfolio with our investment calculator.