Market Cap Categories Definition
Written by True Tamplin, BSc, CEPF®
Updated on June 21, 2021
What is Market Cap
Market capitalization, or market cap, is the combined value of a company’s outstanding stock. It is an estimate of the total value of a company.
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Market Cap Categories
People often divide companies into different size categories based on their market caps:
- Micro-cap: Market cap under $300 million.
- Small-cap: $300 million to $2 billion.
- Mid-cap: From $2 billion to $10 billion.
- Large-cap: Greater than $10 billion.
Some have also used the terms mega-cap to refer to companies over $200 billion, and nano-cap for companies under $50 million.
However, there are no exact definitions for any of these categories, so the cutoffs can vary greatly.