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The total market value of a company's outstanding shares of stock.
Calculated by multiplying the current stock price by the total number of outstanding shares. Companies are typically categorized as large-cap ($10B+), mid-cap ($2-10B), or small-cap (under $2B). Mega-cap companies like Apple and Microsoft exceed $2 trillion in market cap. Market cap is a primary factor in index composition and investment classification. It is important to note that market cap reflects the market's current valuation of equity only and does not account for debt, which is why enterprise value is often a more complete measure of a company's total value.