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Market Capitalization

Also called: Market cap

What is market capitalization?

Market capitalization, or market cap, is the total equity value of a company’s publicly traded shares.

Market capitalization is calculated by taking a company’s share price and multiplying it by the total number of shares. It’s often used to measure a company’s size. In the Morningstar Style Box, large-cap names account for the largest 70% of U.S. stocks, mid-cap names account for the largest 70–90%, and small-cap names are the remaining 10% of companies.