Market Cap: What is it and how does it work?
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If you’ve been involved in stocks for any amount of time, it’s likely that you’ve come across market caps. In fact, the market caps of some of the biggest companies on Wall Street are over 1 Trillion, with the largest market cap at over 2 Trillion (for contrast, Australia’s GDP is 1.553 trillion USD).
So, that’s a lot of big numbers. But what are market caps and do they reflect the actual valuation of a company?
How is a market cap calculated?
Market capitalisation is the aggregate value of a company’s outstanding shares of stock. It is computed by multiplying the company’s share price by its total number of outstanding shares. The formula is actually pretty simple:
Market cap = current share price × outstanding shares

Basically, this is a way of seeing how much the market is valuing a company by both retail and institutional investors. However, this is a general way of seeing how valuable a company is.
If a stock has a large market cap, this does not necessarily mean that the company is healthy (cash flow or debt), just that it likely dominates in its industry. Likewise, a smaller market cap doesn’t necessarily mean a company is in dire straits. Instead, small market caps can often mean a new player to an existing or newly made industry.
Market cap can be a useful metric for determining how the rest of the market is valuing said company. Valuing a stock by market cap shouldn’t be the only thing you consider though. Instead, research and consider other aspects of a business like cash flow, debt, market share and other industry-appropriate considerations (e.g. does this tech company have the best tech?) can help you determine whether you should invest in a company's stock.
Are cryptocurrency market caps different?
While the core concept remains similar, the highly volatile nature of cryptocurrencies lends a different character to crypto market caps. Traditional market caps are tied to companies with physical assets and revenues, while crypto market caps revolve around digital assets whose values are much more speculative.
The formula is similar to a traditional market cap found in share trading, just adapted for crypto:
Crypto Market Cap = current price per coin × total circulating supply
How are large, mid, and small market cap sizes determined?
You’ll usually find investors categorise companies by market cap, which consists of small-cap, mid-cap, and large-cap. Companies will be classed as one of these three based on a certain market cap such as:
- Small-Cap Companies: Tend to have a market cap of less than $2 billion. They are considered to be more volatile and risky, yet they also have a higher growth potential.
- Mid-Cap Companies: These often sit in the middle with a market cap between $2 billion and $10 billion. This kind of stock usually offers a balance of growth potential and stability.
- Large-Cap Companies: Boast a market cap of more than $10 billion and are often well-established firms with a stable earnings record. The larger the market cap, the more unlikely they are to grow substantially (A growth from 1 to 10 billion is more likely than 1 trillion to 10 trillion).
Categorising by market cap can help you gauge the risk and return profile of a company and where they are on their growth curve.
Ready to get started with investing? Check out some of the providers below or head on over to our share trading hub to compare.
Share account comparisons on Mozo - rates updated daily
Share Trading
Small trade brokerage
Monthly fee
$3.00$0.00Invest in AU stocks, US stocks, HK stocks and ETFs on moomoo trading platform. Enjoy $0 brokerage fees for AU&US stock for 180 days as a new user. With US trades from $1.99 USD, other fees apply. Backed by a Nasdaq-listed fintech. (T&Cs apply).
Share Trading
Invest in AU stocks, US stocks, HK stocks and ETFs on moomoo trading platform. Enjoy $0 brokerage fees for AU&US stock for 180 days as a new user. With US trades from $1.99 USD, other fees apply. Backed by a Nasdaq-listed fintech. (T&Cs apply).
- Monthly fee
- $0.00
- Monthly fee waiver
- -
- Special offers
- Brokerage-free trading on AU and US stocks for 180 days and ongoing free access to real-time US market data.
- Brokerage details
- ASX trades are 0.03% the transaction amount, minimum $3.00 per order. US trades from $0.99 USD, other fees apply.
- Settle from any bank account
- Settlement account offered
- -
- CHESS ownership available
- Share pack
- Independent broker reports
- International markets
- Options
- Warrants
- IPOs
- Live data
- Market depth data
- Real time charting
- Other restrictions
- For US trades additional fees apply: settlement fee $0.003 per share up to 1%, ADR custody fee $0.01-$0.05 per share. For sell trades: SEC fee min $0.01 per transaction and activity fee min $0.01 per transaction. These fees are shown in USD.
Read our Mozo Review to learn more about the Share Trading
Tiger Account
Small trade brokerage
Monthly fee
$5.50$0.00Tiger Brokers is an online broker listed on NASDAQ. It offers access to US, ASX & HK stocks, ETFs and US options trading. Enjoy one brokerage-free trade per month on US and ASX stocks* with account opening. Mozo special offer for new users only: Get USD $25 in Tesla fractional shares plus USD $50 in fractional shares for new accounts with an accumulative net deposit of AUD 500*. T&Cs apply.
Tiger Account
Tiger Brokers is an online broker listed on NASDAQ. It offers access to US, ASX & HK stocks, ETFs and US options trading. Enjoy one brokerage-free trade per month on US and ASX stocks* with account opening. Mozo special offer for new users only: Get USD $25 in Tesla fractional shares plus USD $50 in fractional shares for new accounts with an accumulative net deposit of AUD 500*. T&Cs apply.
- Monthly fee
- $0.00
- Monthly fee waiver
- -
- Special offers
- One brokerage-free trade per month for 12 months. Receive 5 fractional shares with a deposit of AUD 500 and have a total account asset value of AUD 500 after 90 days. Referral offer: an additional USD 25 of fractional Tesla shares. T&Cs apply.
- Brokerage details
- 0.055% of trade value, $5.50 minimum brokerage.
- Settle from any bank account
- Settlement account offered
- no
- CHESS ownership available
- Share pack
- Independent broker reports
- International markets
- Options
- Warrants
- IPOs
- Live data
- Market depth data
- Real time charting
- Other restrictions
- -
Read our Mozo Review to learn more about the Tiger Account
Share Trading
Small trade brokerage
Monthly fee
$7.70$0.00Buy and sell with a low $7.70 flat fee per trade and access to all ASX Shares and ETFs to invest in with GO Markets. Enjoy dedicated local customer support, a regulated Australian company for trading ASX Shares and ETFs. Plus, enjoy $0 Brokerage on your next 15 trades! (T&Cs apply).
Share Trading
Buy and sell with a low $7.70 flat fee per trade and access to all ASX Shares and ETFs to invest in with GO Markets. Enjoy dedicated local customer support, a regulated Australian company for trading ASX Shares and ETFs. Plus, enjoy $0 Brokerage on your next 15 trades! (T&Cs apply).
- Monthly fee
- $0.00
- Monthly fee waiver
- -
- Special offers
- Enjoy $0 Brokerage on your next 15 trades when you open a new account! (T&Cs apply).
- Brokerage details
- $7.70 brokerage for trades under $100,000, then 0.05%.
- Settle from any bank account
- Settlement account offered
- Macquarie Cash Management Account
- CHESS ownership available
- Share pack
- Independent broker reports
- International markets
- Options
- Warrants
- IPOs
- Live data
- Market depth data
- Real time charting
- Other restrictions
- -
Read our Mozo Review to learn more about the Share Trading
Idle Cash
Small trade brokerage
Monthly fee
$5.50$0.00Receive interest on your uninvested cash. Deposit over USD/AUD 5,000 to start receiving 1.5% return; 2.25% return on over AUD 50,000; Up to 3.25% return on over USD 50,000. Mozo special offer for new users only: Get USD 50 fractional shares plus USD 25 Tesla shares with a cumulative net deposit of min. AUD 500 within 7 days of the first account opening. T&Cs apply.
Idle Cash
Receive interest on your uninvested cash. Deposit over USD/AUD 5,000 to start receiving 1.5% return; 2.25% return on over AUD 50,000; Up to 3.25% return on over USD 50,000. Mozo special offer for new users only: Get USD 50 fractional shares plus USD 25 Tesla shares with a cumulative net deposit of min. AUD 500 within 7 days of the first account opening. T&Cs apply.
- Monthly fee
- $0.00
- Monthly fee waiver
- -
- Special offers
- One brokerage-free trade per month for 12 months. Receive 5 fractional shares with a deposit of AUD 500 and have a total account asset value of AUD 500 after 90 days. Referral offer: an additional USD 25 of fractional Tesla shares. T&Cs apply.
- Brokerage details
- 0.055% of trade value, $5.50 minimum brokerage.
- Settle from any bank account
- Settlement account offered
- no
- CHESS ownership available
- Share pack
- Independent broker reports
- International markets
- Options
- Warrants
- IPOs
- Live data
- Market depth data
- Real time charting
- Other restrictions
- -
Read our Mozo Review to learn more about the Idle Cash
Webull Share Trading Platform
Small trade brokerage
Monthly fee
$4.90$0.00Webull lets you connect with international markets, trading ASX and US stocks and options. You’ll gain access to user-friendly platforms and technology-driven educational resources plus 2% yield on idle cash with Webull cash management. Earn up to 5.3% (P.A) yield on uninvested funds with Moneybull plus a cash voucher worth USD100 by funding USD2000 or more and maintaining the funds for 90 days! (T&Cs apply)
Webull Share Trading Platform
Webull lets you connect with international markets, trading ASX and US stocks and options. You’ll gain access to user-friendly platforms and technology-driven educational resources plus 2% yield on idle cash with Webull cash management. Earn up to 5.3% (P.A) yield on uninvested funds with Moneybull plus a cash voucher worth USD100 by funding USD2000 or more and maintaining the funds for 90 days! (T&Cs apply)
- Monthly fee
- $0.00
- Monthly fee waiver
- -
- Special offers
- New accounts with a deposit of AUD $100 with at least one buy transaction receive 3 US and 2 ASX Security Trading Vouchers for purchases, valued at AUD $100 total. Up to AUD $5,000 of free fractional Apple shares depending on amount funded. T&Cs Apply.
- Brokerage details
- $4.90 up to $16333.33, then 0.03% on ASX trades. 0.025% commission on US trades.
- Settle from any bank account
- Settlement account offered
- Webull Cash Management
- CHESS ownership available
- Share pack
- Independent broker reports
- International markets
- Options
- Warrants
- IPOs
- Live data
- dynamic
- Market depth data
- Real time charting
- Other restrictions
- 0.50% foreign exchange transfer fee applies for international trading.
Read our Mozo Review to learn more about the Webull Share Trading Platform
ASX Shares
Small trade brokerage
Monthly fee
$0.00$0.00Join the world’s leading social trading platform, trusted by 30 million users worldwide. Invest in stocks, crypto, ETFs and more - all in one place. Hone your financial skills with a $100K virtual demo account.
ASX Shares
Join the world’s leading social trading platform, trusted by 30 million users worldwide. Invest in stocks, crypto, ETFs and more - all in one place. Hone your financial skills with a $100K virtual demo account.
- Monthly fee
- $0.00
- Monthly fee waiver
- n/a
- Special offers
- -
- Brokerage details
- There are no brokerage charges but a 0.50% fee is applied to all funds paid into or taken out of the USD settlement account
- Settle from any bank account
- Settlement account offered
- Customer funds are held in a Trust Account managed by JP Morgan Chase and Co
- CHESS ownership available
- Share pack
- Independent broker reports
- International markets
- Options
- Warrants
- IPOs
- Live data
- Market depth data
- Real time charting
- Other restrictions
- $5 USD withdrawal fee applies and a $10 monthly inactivity fee is charged after 12 months with no login activity.
Read our Mozo Review to learn more about the ASX Shares
Share Trading Account
Small trade brokerage
Monthly fee
$5.00$0.00$0 brokerage when you purchase ETFs ($5 to sell Aussie ETFs), plus traders can get started with a minimum investment of just $100. For new customers, get US $10 of Tesla when you sign up, use the exclusive referral code from Mozo (mozo23), and fund AUD $100 in 30 days (T&Cs apply).
Share Trading Account
$0 brokerage when you purchase ETFs ($5 to sell Aussie ETFs), plus traders can get started with a minimum investment of just $100. For new customers, get US $10 of Tesla when you sign up, use the exclusive referral code from Mozo (mozo23), and fund AUD $100 in 30 days (T&Cs apply).
- Monthly fee
- $0.00
- Monthly fee waiver
- -
- Special offers
- -
- Brokerage details
- Shares held in a consolidated HIN under Superheros name, ownership remains with share purchaser.
- Settle from any bank account
- Settlement account offered
- Superhero Wallet is a cash management account built into Superhero Account (held under NAB)
- CHESS ownership available
- Share pack
- Independent broker reports
- International markets
- Options
- Warrants
- IPOs
- Live data
- Market depth data
- Real time charting
- Other restrictions
- -
Read our Mozo Review to learn more about the Share Trading Account
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