\nMarket cap or \u2018Market capitalization\u2019 or MCap refers to the market value of a company’s outstanding shares. It is used to estimate a company’s value by multiplying its share price by the number of shares available. The market cap is used for a real-time valuation of the company. It keeps on changing as per the share price as well as the volume of shares traded. MCap is an important characteristic of a company and is used by potential investors in understanding the risks of investing in the company.<\/p>\n
Features of Market Cap are:
\n1. Market capitalization helps investors in assessing the value of a company and also in comparing one company against another.
\n2. It helps to predict the future performance of the stock.
\n3. Market Cap helps in categorising companies as large-cap, mid-cap and small-caps.
\n4. Investors create a balanced portfolio with a mix of these companies.
\n5. A high market cap generally means that the company has a larger market presence with good brand recognition and is comparatively stable.<\/p>\n
Factors which impact Market cap are:
\n1. Fluctuations in the market price of a company’s share price can impact the MCap.
\n2. The demand for a company’s products or services impact its profitability and hence the Market Cap.
\n3. The reputation of a company, its performance and goodwill also affect its market cap.<\/p>\n
Market cap or \u2018Market capitalization\u2019 or MCap refers to the market value of a company’s outstanding shares. It is used to estimate a company’s value by multiplying its share price by the number of shares available. The market cap is used for a real-time valuation of the company. It keeps on changing as per the […]<\/p>\n","protected":false},"author":67,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[11],"tags":[],"class_list":["post-3959","post","type-post","status-publish","format-standard","hentry","category-stocks"],"_links":{"self":[{"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/posts\/3959","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/users\/67"}],"replies":[{"embeddable":true,"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/comments?post=3959"}],"version-history":[{"count":0,"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/posts\/3959\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/media?parent=3959"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/categories?post=3959"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/tags?post=3959"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}