---
title: "Definition of Market Cap"
url: https://signalscreener.fr/definition/market-cap/
markdown_url: https://signalscreener.fr/definition/market-cap.md
description: "Market Cap is the total value of all a company's shares."
type: glossary-definition
site: Signal Screener
language: en
keywords:
  - "Market Cap"
  - "Market Capitalization"
translations:
  es: https://signalscreener.fr/es/definition/market-cap.md
  fr: https://signalscreener.fr/fr/definition/market-cap.md
  pt: https://signalscreener.fr/pt/definition/market-cap.md
---

# Market Capitalization

## What is Market Cap?

Market Cap is the total value of all a company's shares. It's calculated by multiplying share price by number of shares. It shows how big the company is.

## Think of it like this

Imagine a pizza cut into 8 slices (shares). Each slice costs $5 (share price). The whole pizza is worth $40 (market cap). Bigger pizzas (companies) are worth more!

## Formula

```
Market Cap = Share Price × Shares Outstanding
```

## Why it matters

- Shows company size
- Determines what index it's in (S&P 500, etc.)
- Affects risk and volatility
- Helps categorize investment type

## Real-world example

Apple: $3T - mega cap, very stable. Rivian: $15B - mid cap, more volatile. Local company: $500M - small cap, highest risk/reward.

---

This is educational content, not financial advice.

Source: [Definition of Market Cap](https://signalscreener.fr/definition/market-cap/) on Signal Screener. Free to quote and cite with attribution and a link to that URL, which is the canonical one.

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