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Market capitalization

The stock market value of a whole company: the share price times the number of shares. It changes every time the share price moves.

Simple example

A company has 1 billion shares trading at $40 each. Its market capitalization is $40 billion.

$40per share×1 billionshares=$40Bmarket cap
Made-up numbers, for illustration only.

Related terms

Enterprise valueMarket value plus debt minus cash.Price-to-earnings ratio (P/E)Share price divided by earnings per share.DilutionNew shares make each existing share a smaller slice.