The Morningstar Dictionary: Market capitalization

It's a fancy way to describe the market value of a company, but what does it really mean?

Christian Charest 17 March, 2017 | 5:00PM

 

 

Looking at a fund's name or reading a fund manager's strategy, you may have come across terms like large cap, mid cap or small cap, and you've probably figured out that it refers to the size of the companies they invest in. But what exactly is market capitalization? And what makes a stock or a fund land in one category or the other?

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Christian Charest

Christian Charest