Series 79: Market Capitalization

Taken from our Series 79 Top-off Online Guide

Market Capitalization

A corporation’s market capitalization, or “market cap,” is the total market value of the corporation’s equity, determined by multiplying the market price per share and the total number of shares outstanding:

market capitalization = (market price per share) x (shares outstanding)

Market capitalization is frequently used as a crude measure of a company’s value, or at least its value in the eyes of investors.

Market cap is not a perfect measure of

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