Stock market glossary
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Market capitalisation
Market capitalisation is a company's stock market value: the share price multiplied by the number of shares.
Companies are usually divided into large (large cap), medium (mid cap) and small (small cap). Large ones are generally more stable and followed by analysts; small ones can grow faster but are riskier and less traded.
💡 In the main indices, such as the S&P 500, each company's weight depends precisely on its market capitalisation.
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