🎓 Small Cap Academy
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Market Cap
Market Cap
Definition
The total value of a company's outstanding shares. Calculated as share price × shares outstanding.
Why It Matters
Market cap tells you the size of a company. Small caps (under $2B), micro caps (under $300M), and nano caps (under $50M) have different risk/reward profiles. Smaller caps have more growth potential but also more risk.
Real Example
A company has 20 million shares outstanding trading at $5. Market cap = $100 million. This is a micro cap. A 50% move is very possible — that only requires $50M of new market interest. The same 50% move on Apple would require $1.5 trillion.