Market capitalization is the total market value of a company. It shows how much a company is worth according to the market, based on the current share price. It is calculated by multiplying the number of outstanding shares by the current price.

The market capitalization changes along with the share price.

When the share price rises, the market capitalization also increases. When the share price falls, the total market value of the company decreases. Market capitalization is used to classify companies into categories such as small cap, mid cap and large cap.

Large companies with a high market capitalization are often considered more stable than smaller companies, although it does not in itself indicate profitability. It mainly provides insight into the size of a publicly listed company.

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