Market Capitalization is the number of shares outstanding multiplied by the current share price. It tells you the value of the company's stock in the share market. Normally, the market cap lets you compare similar businesses. Looking at the Standard & Poor's (S&P) index as of 17th March 2021, they have divided market caps into Small-Cap (S&P SmallCap 600): $750 million to $3.3 billion Mid Cap (S&P MidCap 400): $3.3 billion to $11.8 billion Large Cap (S&P 500): $11.8 billion or more What does market cap tell us? Large Cap: These are matured companies and major players in their sector. There might not be exponential growth in the short period but in long run, however, provide a consistent increase in share value and dividend payments. Mid Cap: These are established companies that are supposed to have rapid growth. Most of the mid-companies are in the process of expansion and can offer better returns in both the short-term & long-term. But, inherently ...