What does the market cap tell you?
Market capitalization, or market cap, is one measurement of a company's size. It's the total value of a company's outstanding shares of stock, which include publicly traded shares plus restricted shares held by company officers and insiders.
Is it good if market cap is high?
It allows investors to understand the relative size of one company versus another. Market cap measures what a company is worth on the open market, as well as the market's perception of its future prospects, because it reflects what investors are willing to pay for its stock.
Why is market cap important?
Market cap is often used to determine a company's size, then evaluate the company's financial performance to other companies of various sizes. In investing, companies with larger market capitalization are often safer investments as they represent more established companies with generally longer history in business.