Capitalization: Capitalization – or “market capitalization” – refers to what the market thinks a company should be valued at. There are five levels of capitalization you’ll hear about as an investor:
Largecap – Large, multinational companies valued at more than $5 billion. Midcap – Midsize companies valued between $1 billion and $5 billion. Smallcap – Smaller companies valued between $500 million and $1 billion. Microcap – Very small companies valued between $100 million and $500 million. Nanocap – Even smaller companies valued under $100 million.
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