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What is Market Capitalization?

Market capitalization represents the aggregate value of a company or stock. It is obtained by multiplying the number of shares outstanding by their current price per share.

For example, if XYZ company has 15,000,000 shares outstanding and a share price of $20 per share then the market capitalization is 15,000,000 x $20 = $300,000,000.

Generally, the stock market recognizes three market cap divisions: large cap, mid cap, and small cap, although the cutoffs between the categories are not precise  or fixed.

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