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Market cap: the price of the whole company

A $10 share isn't cheap and a $500 share isn't expensive. What matters is the price of the entire company: share price multiplied by the number of shares.

That figure is market capitalisation. It's how you tell that a $30 stock can be worth more than a $900 one.

Cap also tells you roughly what kind of ride to expect. Mega-caps move slowly and rarely disappear; small caps move violently in both directions.

Remember

Always compare the whole company, never the price of one slice.

See a real example

Compare Apple, Nvidia and Ford

Check each share price, then check the size of the business behind it.

What this shows

Share prices here say nothing useful. The size of the company and what you pay for its sales say everything.

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