Market Capitalization
Price × shares outstanding — the actual size of a company, and why a $5 stock isn't 'cheap'.
What You're BuyingBeginner 4 min read· Lesson 6 of 13 in Investing Fundamentals
The formula
Market cap = share price × shares outstanding. A $5 stock with 10B shares ($50B cap) is a far bigger company than a $500 stock with 10M shares ($5B cap). Price alone tells you nothing about size or value — this is the single most common beginner misconception.
Size buckets
Large-cap (>$10B) — established, liquid, less volatile. Mid-cap ($2–10B). Small-cap (<$2B) — higher growth potential, higher risk, thinner liquidity. Micro-caps are where manipulation schemes concentrate.
On this platform
The Symbol page header shows market cap, shares outstanding, and float for any synced symbol — check it before judging a price.