Market cap, or market capitalisation
Māori translation:
Definition
Market cap, or market capitalisation, is a company’s total dollar market value. This is their worth as determined by the share markets. A company’s share price and how many outstanding shares calculates their current value, which is: Share price x number of shares = market cap (value of the company).
Market cap categories
- Large-cap: US$10 billion or more
- Mid-cap: Between US$2 billion and US$10 billion
- Small-cap: Between US$300 million and US$2 billion
A diversified portfolio may include a mix of large-cap, mid-cap, and small-cap stocks or index funds to help balance risk and and potential gains.
We acknowledge and thank the FMA, Dr Karena Kelly and Brook Taurua Grant, the RBNZ and the Māori Dictionary for their research which helped us with te Reo Māori kupu for this glossary.
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