The value of a company's outstanding shares, calculated by shares times
current price. In general, the larger the market capitalization, the less
risk. Firms with small market capitalizations can be particularly risky.
Basic breakdown of market caps are as follows:
Giant cap. = over $25 billion
Large cap. = $5 billion to $25 billion
Medium cap. = $1 billion to $5 billion
Small cap. = $250 million to $1 billion
Micro cap. = Under $250 million
Note: For non-US companies that wish to have their companies shares
traded in US dollars on US exchanges, market capitalization is based on
ADR shares and does not correspond to the actual market cap in their
homeland.