Market Cap

[BOSS]

Not to sound like an idiot, but would someone mind explaining "Market Cap" to me?

TIA~!

 

[Joe Mioux]

simply put, it is what a company is worth at any given time.

outstanding shares x price per share.

 

[Joe Mioux]

Large cap >$10 B

Mid cap $10-$2 Billion

Small cap < $2 Billion

 

[BOSS]

Thanks Joe, I knew you'd fix me up

Just watching a few of the companies caught up in the Senate probe of WebLoyalty.

 

[BOSS]

So, when a market cap drops, then the assumed value of the company has been down graded?

As in this example where yesterday, at the close of trading the market cap was $671.85M and right now it's $576.M ??

 

[Mikey the Flower Guy]

dang....I wore this hat for nothing then!!..went to market, and nuthin happened......

 

[BOSS]

dang....I wore this hat for nothing then!!..went to market, and nuthin happened......

Not so fast... check out the other thread in a minute...

 

[Joe Mioux]

So, when a market cap drops, then the assumed value of the company has been down graded?

As in this example where yesterday, at the close of trading the market cap was $671.85M and right now it's $576.M ??

yes for the most part.

but if a company gets split up in to two entities the market cap has decreased but it doesn't necessarily mean anything bad.