Mega Cap
What It Is:
Mega cap is a designation for any company with a market capitalization in excess of $200 billion.
How It Works/Example:
There are certain companies that have established themselves as market leaders are have acquired a substantial portion of the market. The top players in this league are referred to as mega cap companies because of their relative market size and value.
Any company worth above $200 billion or more qualifies as a mega cap company. Microsoft Corporation, Exxon and Wal-Mart are examples of mega cap companies. Since market capitalization fluctuates with the company's stock price, companies can fall in and out of the mega cap classification.
Why It Matters:
Due to their size and market value, mega cap companies are market leaders and wield considerable influence on the direction of their respective market sectors in terms of both their products and their financials. Classifications such as mega cap can change over time.
Facebook Comments:
Cached on May 24, 2012, 10:30 am