@rasheedmovic
Market capitalization, or market cap, is the total value of all outstanding shares of a company's stock or a cryptocurrency. It's calculated by multiplying the total number of shares or coins by the current market price.
Market Cap = Total Number of Shares/Coins × Current Market Price
For example:
- If a company has 1 million shares outstanding and the current stock price is $100, the market cap would be $100 million (1,000,000 shares × $100).
- If a cryptocurrency has 10 million coins in circulation and the current price is $50, the market cap would be $500 million (10,000,000 coins × $50).
Market capitalization is an important metric for investors, as it helps them:
- Understand a company's or cryptocurrency's size and scale
- Compare the value of different companies or cryptocurrencies
- Evaluate market trends and potential for growth
Market cap categories:
- Large-cap: $10 billion+
- Mid-cap: $2 billion-$10 billion
- Small-cap: $300 million-$2 billion
- Micro-cap: $50 million-$300 million
- N…
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