Market capitalization is the valuation and size of a company.
You will often hear “Market Cap” for short.
Market cap is the market valuation of a company. Calculated by multiplying the number of outstanding shares by the current share price.
Microsoft (MSFT) currently has approximately 8.5 billion outstanding shares and a current share price of $29.47. Therefore their Market cap is going to be approximately $250.5 billion!
8.5 billion x $29.47 = $250.495 billion