Market capitalisation (or market cap for short) simply refers to a company’s share price multiplied by its total number of outstanding shares.
For example, Company ABC has a share price of $2 and an outstanding share count of 200 million. Therefore, its market capitalisation would be $400 million ($2 x 200 million).
Market cap measures the size of a company; so the higher a company’s market cap, the larger it is.
Companies are usually divided according to market capitalisation as follows:
Large-cap companies ($10 billion or more); Mid-cap companies ($2 billion to $10 billion); and Small-cap companies ($300 million to $2 billion).The following table shows the top 15 companies by market cap in Singapore (data as of 31 January 2020):
The above gives a flavour of the largest companies available for investors here.
Most of the
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