Market Capitalization (Market Cap)
Definition
The total dollar market value of a company’s outstanding shares of stock. Calculated as current share price multiplied by total shares outstanding. Used to classify companies as large-cap, mid-cap, or small-cap.
Formula / Rules
$ \text{Market Cap} = \text{Share Price} \times \text{Shares Outstanding} $
Example
A company with 1 billion shares at $50 per share has $50 billion market cap. Dividend Yield Category: Equity / Income Metric Definition: The annual dividend payment expressed as a percentage of the stock’s current price. Indicates income retu
Frequently Asked Question
What is Market Capitalization (Market Cap) in trading?
The total dollar market value of a company’s outstanding shares of stock. Calculated as current share price multiplied by total shares outstanding. Used to classify companies as large-cap, mid-cap, or small-cap.
APA Citation
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· Source: VixShield Trading Glossary — From SPX Mastery by Russell Clark
⚠️ Not financial advice. This definition is educational content from the SPX Mastery book series by Russell Clark (VixShield). Past performance is not indicative of future results. Trading options involves substantial risk of loss and is not appropriate for all investors. Always paper trade before risking real capital.