The total market value of a company's shares on the market is referred to as market capitalization. It is frequently abbreviated to market capitalization. Market capitalization allows investors to quickly determine the size of a company, which can help them assess the risk of investing in its shares.
Market capitalization is calculated by multiplying the total number of outstanding shares of a company by the current share price. For example, if Apple has six billion shares outstanding, each worth $200, its market cap is $1.2 trillion.