Market Cap Explained: It's the Single Number I Check Before Buying Any Stock
I look at a company's market cap before analyzing its fundamentals.
Overview
The market cap reflects the total dollar value of a publicly traded company's outstanding shares. If a company has 1 billion shares at $8 per share, it has an $8 billion market cap.
I look at this number before buying any stock because it highlights an investment's growth potential. While market cap isn't the only thing to consider, it's a critical part of my stock analyses. Here's why I put so much value into this number.
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Originally published at www.fool.com.
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