Market Capitalization
- A company’s market capitalization (also referred to as “mkt cap”, “market cap” or “capitalized value”) is the total market value of a company. A company’s market capitalization is obtained by multiplying the current share price by the total number of shares that were issued.
- Market capitalization
A company’s market capitalization is a public opinion of what the company is worth.
It is the amount you have to pay to buy the entire company (i.e. all the shares in the company), at the current share price.
A company’s market capitalization is often sentiment driven and it takes into consideration the market’s opinion about the company’s future earnings and prospects, as well as local and global economic conditions.
A company’s market capitalization may therefore differ significantly from the company’s actual net worth.
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