Categorization of companies by capitalization Traditionally, companies are divided into large-cap, mid-cap, and small-cap. Recently people have added 'micro-cap' and 'nano-cap'. People have rules of thumb to determine category from market capitalization. These need to be adjusted over time due to inflation, population change, and overall market valuation (for example, $1 billion was a large market cap in 1950 but it is not very large now), and they may be different for different countries. A rule of thumb may look like:[3]
Mega-cap: Over $200 billion Large-cap: $10 billion–$200 billion Mid-cap: $1 billion–$10 billion Small-cap: $300 million–$1 billion Micro-cap: $50 million-$300 million[4] Nano-cap: Below $50 million Different numbers are used by different indexes; there is no official definition of or general agreement about the exact cutoffs. They also may be done by percentiles rather than fixed cutoffs.