What is market cap: Yahoo U

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Companies come in all shapes and sizes.

Market capitalization is one way of looking at the relative size of a company. It’s generally calculated as the stock price multiplied by the total number of outstanding shares.

For example, if a company’s stock is trading at $20 a share, and there are 1,000,000 shares outstanding, then the market cap of that company is $20 million.

Broadly, a small company is defined as one with a…


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