JoymistaWhat Is Market Cap (Market Capitalisation)?
Market cap is the share price times the number of shares outstanding; in crypto, the coin price times the circulating supply.
Explained
Market cap is used to sort companies and coins into large, mid and small. Price alone does not say a share is cheap or dear: a 5-dollar stock can be worth more than a 500-dollar one if it has far more shares.
Example
Example with made-up numbersA 50-dollar share and 1 billion shares give a market cap of 50 × 1,000,000,000 = 50 billion dollars.
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Related terms
- P/E RatioThe P/E ratio is the share price divided by the annual earnings per share (EPS): how many…
- EPS (Earnings Per Share)EPS is a company’s net profit divided by its number of shares: each share’s slice of the…
- ETF (Exchange-Traded Fund)An ETF is a basket of assets, such as all the stocks in an index, that is bought and sold…
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Open in JoymistaEducational content, not investment advice.