Market Capitalization
The total market value of a company's outstanding shares — calculated by multiplying the stock price by the number of shares outstanding.
Explained Simply
Market cap categorizes companies by size: mega-cap (>$200B), large-cap ($10B-$200B), mid-cap ($2B-$10B), small-cap ($300M-$2B), and micro-cap (<$300M). Market cap affects volatility, liquidity, and institutional ownership. Small-caps tend to be more volatile and less liquid but offer higher growth potential. Large-caps are more stable and widely covered by analysts. Market cap also determines index membership — S&P 500 requires a minimum market cap.
How Tradewink Uses Market Capitalization
Market cap is used by the day trade screener to filter candidates and adjust position sizing. Micro-cap stocks (<$300M) are excluded from the default scan universe due to low liquidity. The AI adjusts slippage estimates based on market cap — smaller companies get wider slippage assumptions in the cost model.
Related Terms
See Market Capitalization in action
Tradewink uses market capitalization as part of its AI trading signal pipeline. Start getting signals that use this concept to find real opportunities.