Definition
Market capitalization is share price times shares outstanding — a rough measure of company size. Many broad indices are capitalization-weighted, so large companies naturally carry more weight.
That is efficient and transparent, but it can concentrate exposure in a handful of names during certain regimes.
Why it matters
When you buy a broad ETF, you are often buying “the economy’s giants” first — know that preference explicitly.
How Cognitor helps you research
Cognitor’s fundamentals and psychology lenses help interpret concentration and crowding inside cap-weighted sleeves.