What Is the Market Cap?

What Is the Market Cap?

Market Cap refers to “Market Capitalization”, Market Capitalization is the market value of a publicly-traded company's shares. It’s an important factor for investors to decide whether should buy shares of the company.

Is a High or Low Market Cap Good?

Large-cap companies are normally considered more safer than mid-cap or small-cap companies. It’s more conservative for investors to choose large-cap companies due to their low risk.

Mid-cap companies are usually experiencing rapid growth. Its risk/return is between large stocks and small-cap stocks.

Small-cap companies are risky than mid-cap and large-cap companies, but they may bring significant growth potential to investors.

What Could Impact a Company's Market Cap?

Significant changes: no matter upward or downward, significant changes will affect the market cap.

Investor perception: if investors react to negative news, stock could be punished and depreciated accordingly, thus affecting market cap.

Profits and revenues: Strong profitability or declining sales are sure to affect market cap.

How to use market cap?

Investors can make diversified investments according to their own goals. At present, most investors prefer to invest in stocks with multiple market cap at the same time. If you want your portfolio to grow more steadily, then you should invest more money in the allocation of large-cap stocks. If you want more considerable returns in recent years, small-cap and mid-cap stocks will be a better choice.

What Are the Top 10 Market Cap Companies?

Company Name Market Cap ($B)

1 APPLE INC. 2442.90

2 MICROSOFT CORPORATION 2114.49

3 AMAZON.COM, INC. 1802.27

4 ALPHABET INC. 1767.16

5 FACEBOOK, INC. 967.35

6 BERKSHIRE HATHAWAY INC. 635.74

7 TESLA, INC. 620.60

8 VISA INC. 529.19

9 JPMORGAN CHASE & CO. 459.85

10 NVIDIA CORPORATION 452.57

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