US Stock Market: 10 highest market cap companies | The Financial Express

US Stock Market: 10 highest market cap companies

Market cap, which stands for market capitalization, is a term used by investors to indicate how much a firm is worth.

US Stock Market: 10 highest market cap companies
The market capitalization of a company is determined by dividing the share count of all outstanding stock by the stock's current price.

Market capitalization is an important yardstick used while screening and shortlisting the right stock among thousands of companies listed on a stock exchange. The total value of a publicly traded company’s shares is referred to as market cap. Market cap, which stands for ‘market capitalization,’ is a term used by investors to indicate how much a firm is worth.

The market capitalization of a company is determined by dividing the share count of all outstanding stock by the stock’s current price. The market capitalization of a company, for instance, would be $100 million ($100 multiplied by 1,000,000 shares) if it issued one million shares of stock trading at $100 each. Market capitalization, often known as cap, refers to a company’s valuation on the stock exchange

But, what do these numbers indicate? They help one to categorize them under different buckets. According to their size, companies are typically divided into one of three major groups: large-cap, mid-cap, and small-cap.

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Large-cap: Market value of $10 billion or more; typically established, mature businesses with a solid reputation.
Midcap: Companies with a market value between $3 billion and $10 billion; these are often well-established businesses operating in rapidly expanding markets.
Small-cap: $3 billion or less in market value; typically young businesses that cater to specific markets or developing industries.

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Large-cap stock investments are typically seen as more cautious than small- or mid-cap stock investments, presumably providing less risk in exchange for less aggressive growth potential. Large-cap companies often have more stable and mature businesses because they have grown stronger through time and endured trying business circumstances.

Large organizations, however, may have restricted development potential because they have already seized their best chances to expand to their present size.

Here are the top 10 companies with the highest market capitalization

  1. Apple ( AAPL ) $2.351 T
  2. Microsoft (MSFT) $1.901 T
  3. Alphabet (GOOG) $1.303 T
  4. Amazon (AMZN) $960.28 B
  5. Berkshire Hathaway (BRK-A) $696.55 B
  6. Tesla (TSLA ) $606.20 B
  7. UnitedHealth (UNH) $500.96 B
  8. Johnson & Johnson (JNJ) $467.67 B
  9. Visa (V) $460.99 B
  10. Exxon Mobil (XOM ) $452.43 B

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First published on: 04-12-2022 at 12:01:45 pm
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