ELI5: Explain Like I'm 5

Market capitalization

Market capitalization (or "market cap") is a way of measuring the size of a company. To calculate market capitalization, you first need to know the company's total value. This is done by multiplying the number of shares of stock the company has by the price of each share. This number is the market capitalization. For example, if a company had 10,000 shares of stock, and each share was worth $10, then the company's market capitalization would be $100,000.
Related topics others have asked about: