The total dollar market value of a company’s outstanding shares, calculated by multiplying total shares by current share price.
Street Wall St.'s Definition:
The live, real-time price tag to buy the entire corporation outright right this second if you had an infinite bank account. It groups companies into size classes, showing who is a market titan versus an up-and-coming small player.
Real-World Example:
If a tech company has 10 million shares floating on the exchange and the current stock price is $100, its Market Cap is exactly $1 billion. This places it in the mid-cap category, signaling it has scaled past a startup but hasn’t hit mega-giant status.