Market capitalization, or market cap, is a measure used to evaluate the size and value of a publicly traded company. It is calculated by multiplying the company’s total outstanding shares by its current market price per share. Market cap categorizes companies into different groups based on their total market value, which can provide valuable insights for investors. Additionally, market cap index funds offer an easy and efficient way to invest in specific market cap categories. Let’s delve deeper into these concepts. Market Cap Categories Companies are generally classified into three main market cap categories: large cap, mid cap, and small cap. Large Cap: Large-cap companies are typically well-established and have a market capitalization of over $10 billion. These companies are often industry leaders with a significant market presence and global operations. Examples of large-cap companies include Apple, Microsoft, and Amazon. Large-cap stocks are known for their stability and tend to be less volatile compared to smaller-cap stocks. Mid Cap: Mid-cap companies have a market capitalization ranging from $2 billion to $10 billion. These companies are often in a growth phase, showing potential for expansion and