Introduce
In August 2018, Apple shares reached $ 1 trillion in the stock market. This was a turning point in the volume of stock market transactions. It should be noted that this figure is higher than the GDP of most countries, including the Netherlands, Saudi Arabia, and even Switzerland.
After Apple, other companies such as Amazon, Microsoft, and Google reached the $ 1 trillion market cap in one year.
Market Cap
Market capitalization is the total amount of stock value of a brand or company based on the share price and the number of shares available to its shareholders.
Market cap accurately shows the amount of capital of a company. Because the market is volatile and the chances of buying and selling stocks are very high during the day, the market value of a brand also fluctuates a lot.
The stock price is the price based on the dollar that is considered to buy or sell shares. Stock prices are also constantly changing based on the supply and demand of the product by the company or brand.
The Impact Of Market Cap On Investment
Investors can enter the market to buy stocks by relying on the market cap of a brand or company. Based on investment strategies, companies are classified into Small Cap, Medium Cap, and Large Cap.
Large-Cap Companies
Companies with between $ 10 billion and $ 200 billion in market cap are in the extensive cap range. Most of the world’s most reputable brands are on this list.
Here are three of the biggest companies on the Large Caps list:
- American Express (NYSE: AXP)
- McDonald’s (NYSE: MCD)
- The Walt Disney Company (NYSE: DIS)
Large caps are those companies that have a high reputation, value, and brand strength and have been among the top companies in the world in the long run.