Basics

Market Capitalization

By Ryan Silk & Lawrence Polatchek · Reviewed April 2026 · Options Trading Glossary

Total market value of outstanding shares

What is Market Capitalization?

Market Capitalization The total market value of a company's outstanding shares, calculated as share price multiplied by total shares outstanding. Large-cap stocks (over $10B) typically have more liquid options with tighter bid-ask spreads than small-cap stocks.

Complete Definition

The total market value of a company's outstanding shares, calculated as share price multiplied by total shares outstanding. Large-cap stocks (over $10B) typically have more liquid options with tighter bid-ask spreads than small-cap stocks.

Example

AAPL at $150/share with 15 billion shares outstanding has a market cap of $2.25 trillion.

Related Terms

Stock Liquidity Bid Ask Spread

Written by

ApexVol Research Team

Quantitative options research

All calculations use live ORATS institutional data — the same source used by professional volatility desks.

Technical reviewer

Ryan Silk, ApexVol Founder

Reviewed for technical accuracy

10+ years trading options. Built ApexVol's pricing engine, Greeks model, and IV-rank methodology.

This guide is updated as market conditions and ORATS data change. Last revised 2026-05-12. How we research →

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