News about market capitalization

Market capitalization is the total value of a company's outstanding shares, calculated by multiplying the share price by the number of shares outstanding; the article uses Nvidia, the world's largest company at about $5.5 trillion, as an example, with shares near $229 and 24.3 billion shares outstanding. Stocks are grouped by market cap into micro-cap ($50 million to $250 million), small-cap ($250 million to $2 billion), mid-cap ($2 billion to $10 billion), large-cap ($10 billion to $200 billion) and mega-cap ($200 billion and above), each with different growth and risk profiles, and many indexes and ETFs are built around these sizes. A stock split does not change market cap, the article notes, citing CrowdStrike's 4-for-1 split in July, when its price fell from $772.74 to $193.19. The S&P 500 requires a minimum market cap of $20.5 billion and reviews its holdings quarterly.