Resource Dictionary

Capitalization

Total value of securities issued by a corporation, including stocks, bonds, and debentures, often taken as a measure of a company’s market value. Calculated by multiplying the number of outstanding securities by the current price. Sometimes called the cap or market cap. Generally, companies are said to have a “large cap” if they have a capitalization over $5 billion, “medium cap” if $1 billion to $5 billion, “small cap” if $250 million to $1 billion, and “micro cap” if less than $250 million.