6th Nov 2009 by JonB
Generally, the term large cap is used to denote any company with a market capitalization over $10 billion. The "cap" is short for capitalization.
Note that this does not measure, assets, debt, growth, earnings, or any multiples. Market capitalization simply equals the amount of shares a company has outstanding times the current market price.
If company XYZ Is trading at $10.50 a share and has 250,000 shares outstanding then the market cap would equal $2,625,000. There are also small cap and medium cap companies.
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