Glossary

Market capitalisation, or market cap, is a financial metric used to determine a company's total market value.

It's calculated by multiplying the company's outstanding shares by its current share price. Market cap is an essential tool for investors to understand a company's size, valuation, and risk profile. It also helps compare companies across industries and markets. 📊💼

For example, if a company has 10 million outstanding shares and its current share price is $20, its market cap would be $200 million (10 million x $20).

Fun fact: Companies are often categorised into small-cap, mid-cap, and large-cap based on their market capitalisation. Large-cap companies typically have a market cap of $10 billion or more, mid-cap companies between $2 billion and $10 billion, and small-cap companies less than $2 billion. These categories can give investors an idea of the company's growth potential and risk profile. 🌱🚀