What is a market cap?
Written by Chanel
Updated over a week ago

Market cap is the market value of a company’s shares currently available for purchase. It's calculated by multiplying the current stock price by the number of shares outstanding.

If you’ve heard of a stock being described as large or small cap this is the figure it relates to.

Large Cap (10 Billion+)

Large cap shares are generally considered safer investments as they are larger, more established businesses.

Small Cap (300 Million to 2 Billion)

These are smaller companies and are generally considered slightly riskier investments due to the size and age of the company.

As always, this is general information only and does not consider your personal circumstances; make sure you do your research and choose what's best for you!

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