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Can someone explain how market capitalization is used in market analysis?

» Market Analysis
  • Market capitalization represents the total value of a company's shares, indicating its size and investment risk profile.
  • Analysts use market cap to compare companies within or across industries, determining their relative worth on the stock market.
  • Market cap influences investment decisions by categorizing stocks into large, mid, and small-cap, each with different volatility and growth potential.

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Can someone explain how market capitalization is used in market analysis?

Yo, been trying to wrap my head around this whole market capitalization thing. How does it factor into market analysis? How is it used exactly? Having a bit of an issue understanding it. Thanks in advance.

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