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Glossary term · Markets

Market capitalisation

Price per unit multiplied by circulating supply; a measure of size, not of liquidity or quality.

Term identifier term:market-capitalisation

Published

Definition from reference release method-v1.2.0

Often confused with

Market capitalisation

Price per unit multiplied by circulating supply; a measure of size, not of liquidity or quality.

Liquidity (market)

The ability to buy or sell an asset in size without moving its price much.

Market capitalisation measures size. It does not show how much of an asset can be traded without moving its price; that is market liquidity.

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