Market capitalization, also known as market cap, refers to the total value of a company's outstanding shares of stock. It is calculated by multiplying the current market price of a company's shares by the total number of shares in circulation. Market capitalization is a widely used metric to measure the size and worth of a publicly traded company. It helps to determine the relative size of a company compared to its competitors and is often used by investors to evaluate investment opportunities and determine the overall value of a company on the stock market.
In summary, market capitalization is a measure of a company's value based on its stock price and the number of shares outstanding. It is an important indicator used in the financial markets for assessing the size and worth of a company.