Market Cap
The total market value of the company (price \u00d7 shares). Conventions vary; this platform uses Mega \u2265 $200B, Large $10\u2013200B, Mid $2\u201310B, Small $300M\u2013$2B, Micro <$300M. (MSCI and S&P use different cutoffs.)
Why it matters
Determines size classification (micro/small/mid/large/mega cap) which affects risk profile, liquidity, index inclusion, and institutional ownership constraints. Many funds can only invest above certain market cap thresholds.
How to read it
Conventions vary by data provider; this platform uses: Mega cap (>$200B) — dominant platforms, lower growth; Large cap ($10-200B) — established leaders; Mid cap ($2-10B) — growth potential with some stability; Small cap ($300M-2B) — higher growth, higher risk; Micro cap (<$300M) — speculative, often illiquid. MSCI uses $50B+ for Mega; S&P has no formal Mega category. The size premium: small-cap stocks have historically outperformed large-caps by ~2% annually (Fama & French SMB factor), though this premium has been inconsistent since the 1980s.
Source
NYSE market data. Apple became first $3T company in Jan 2022.
Lessons that use this term
Related terms
Active Management · Active Share · AI Revenue · Anchoring Bias · Cost of Capital · Creation Unit
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