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Market capitalisation

German: Marktkapitalisierung

A company’s stock market value – share price multiplied by the number of shares outstanding.

Market cap shows what the market thinks a company’s equity is worth. It drives the weighting in most indices and is used to classify companies as large caps, mid caps and small caps.

Note that market cap only measures equity. Anyone buying the whole company also takes on its debt – that’s what enterprise value captures.