← Glossary
Market capitalisation (market cap)
A company's share price times its number of shares — what the market values the whole company at.
A company with 400 million shares at $50 has a market cap of $20 billion. It changes every time the price does, so it is the market's view at that moment, not money the company holds.
Compare companies by market cap, not by the price of one share: the share price depends on how many shares the company is divided into.