What is Market Cap?
Market capitalisation explained — how company size affects volatility, risk, and how the AI weights signals.
The formula
Market Cap = Share Price × Total Shares Outstanding
If a company has 100 million shares trading at $50, its market cap is $5 billion.
Size categories
- Mega-cap — above $200B (Apple, Microsoft, Amazon)
- Large-cap — $10B–$200B. Liquid, analyst-covered, lower volatility.
- Mid-cap — $2B–$10B. Balance of growth potential and stability.
- Small-cap — $300M–$2B. Higher growth potential, higher risk, less liquid.
- Micro-cap — below $300M. Very high risk; thin trading volume.
Why it matters for trading
Larger companies have more analyst coverage, tighter bid-ask spreads, and are harder to manipulate. Smaller companies can move dramatically on thin news. The AI applies more caution to small-cap signals due to higher volatility and liquidity risk.
On TradeMind AI
Market cap is shown in the fundamentals section of every stock analysis. The AI uses it to calibrate stop-loss width — small-caps typically require wider stops to avoid being shaken out by normal noise.
See it in action
Every TradeMind AI signal shows confidence score, entry, stop, target, and R-multiple — all explained with tooltip hints when you hover the term.