Refers to the dollar value of a company. To put it another way, market capitalization is the amount of money someone would have to pay to buy the company. To calculate market capitalization, multiply the total number of a company's shares by the current price per share. For example, if a company has 10 million shares, and the current price is $20 per share, then the company's market capitalization is $200 million ($20 x 10 million). When investors refer to small cap, mid cap, or large cap stocks, they're referring to the amount of the stocks' market capitalization. Large cap is a company with over $1 billion in market capitalization, a mid cap has between $500 million and $1 billion and a small cap has less than $500 million.