Commonly referred to as “market caps” market capitalization is a term used to refer to the total value of a company’s shares of stock. A company’s “market cap” is achieved by multiplying the price of a stock by the number of its outstanding shares. Hence, if a company had 20 million shares that were selling at $50 a share the company would have a “market cap” of $1 billion.
This past week Apple became the first company in the history of the world to reach a $3 trillion market cap. Since 2018 Apple’s value has tripled. This new valuation means that Apple now accounts for 7% of the S&P 500 index.
Putting Apple’s Value into Context
Today, Apple is worth nearly as much as all the 2,000 companies on the small-cap Russell 2000, which has a combined worth of $3.5 trillion. The Russell 2000 index is a stock market index that measures the performance of the 2,000 smaller publicly-traded companies and is regarded as a leading indicator of future trends for the US economy.
Elaine Allan, BA, MBA
Technology & Business Blogger
Vancouver, BC, Canada