Market Capitalization

February 1, 2026 · 1 min read

Market Capitalization is a corporate finance/investing concept used to value companies and compare performance. The key is what changes when it moves up or down-prices, cash flows, risk, or incentives.

Example: Investors compare Market Capitalization across firms to judge profitability, growth, and valuation.

Related terms: Trade Balance, Volatility, Treasury.