Definition: Market capitalization is the total value of all the shares of stock the company has issued. A company that has 1 million shares that are selling for $10 each would have a market capitalization of $10 million. This means you could buy that company for $10 million, if you had the spare cash.
Market capitalization can also refer to the total value of a stock exchange. For example, the market cap of the NASDAQ would equal the market cap of all the companies traded on the NASDAQ combined.
Also Known As: Market Cap
Examples: Some large U.S. corporations have a market cap that is larger than the total GDP of many small countries.
