Market capitalization, often referred to as market cap, is a measure of the total value or size of a publicly traded company, calculated by multiplying the current market price per share by the total number of outstanding shares. Market capitalization represents the aggregate market value of a company's equity or ownership stake in the eyes of investors and the financial markets. Market capitalization is an important metric used by investors, analysts, and market participants to assess the relative size, scale, and valuation of companies, compare investment opportunities, and construct diversified portfolios. Companies with higher market capitalizations are typically larger, more established corporations with broader market presence, extensive operations, and diversified revenue streams, while companies with lower market capitalizations may be smaller, growth-oriented firms with higher growth potential or higher risk profiles. Market capitalization is used to classify companies into different categories, such as large-cap, mid-cap, and small-cap stocks, based on predefined thresholds. Market capitalization is calculated using the following formula: Market Capitalization = Current Market Price per Share × Total Outstanding Shares. Market capitalization is dynamic and fluctuates based on changes in stock prices and the number of outstanding shares, reflecting investors' perceptions, expectations, and sentiment regarding a company's growth prospects, profitability, risk factors, and overall market conditions.