Sunday, May 23, 2010

Stock Market Prices - Market Cap Classification

The use of market capitalization or market capitalization refers to the value of a company and is a measure of company size. Market capitalization is the value you get when you get all of the outstanding shares of a stock multiplied by the price of a single share. For example if a company has million shares outstanding and the price is the market capitalization was . The capitalization in the market are usually listed on stock prices can be found on the Internet.

Companies are classified into categories S market capitalization regard to how big companies are measured by market value. Here are five main market capitalization category N

Micro-cap under The smallest and riskiest businesses available. Penny stocks fall into this category.

Small Cap million to billion dollars Stocks with a higher growth potential but with a higher risk. Typically includes new or small businesses.

Mid CAP to Some of the safety of large caps in some of the growth potential of small caps. The companies have Exploited in smaller markets than the companies and their stock prices are generally lower Volatility.

Large Cap billion U.S. dollars to billion U.S. dollars shares for conservative investors who want a sustained increase of greater safety. The stock is defined as

Mega Cap over billion U.S. dollars The largest companies are typically leaders in their sectors. Examples include Wal-Mart and Exxon.

No universal agreement on the exact cutoffs category. Many investors prefer the three-cover system of small medium and large while others prefer to rest within the preceding five categories N.

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