Market capitalization, commonly referred to as “market cap,” is a measure of the total value of a company’s outstanding shares. It is calculated by taking the current share price and multiplying it by the total number of shares outstanding. Companies with higher market capitalizations tend to have more influence in their respective markets, and thus command greater respect and investment potential. Market cap can also be an indicator of a company’s overall financial health, so it’s important for investors to pay attention to this metric when evaluating potential stocks.