Definition of Term [In Glossary]
- Introduction to Stock Investing
- What is a Stock & Stock Market?
- Stock Investing Basic Terms
- Different Kinds of Stocks
- How Stock Investing Works?
- How Do I Make Money w/ Stocks?
- How Much Money Do I Need to Start Investing?
- How Much Money Should I Invest?
- How to Start Investing in Stocks?
- Stock Investment Do's & Dont's
- How to Buy Stocks?
- How to Choose a Stock Broker?
- How Do Brokerage Account Work?
- How to Open A Brokerage Account
- How to Build a Stock Portfolio?
- Buying Blue Chips Stocks
- Investing in Preferred Stocks
- Best Cheap Stocks to Buy
- Stocks Shopping List
- Stock Market Glossary
What is Market Capitalization?
Market capitalization is the market value of a publicly traded company’s outstanding shares. It is commonly called market cap,
It is equal to the share price multiplied by the number of shares outstanding. Since outstanding stock is bought and sold in public markets, capitalization could be used as an indicator of public opinion of a company’s net worth and is a determining factor in some forms of stock valuation.
Market cap reflects only the equity value of a company. A firm’s choice of capital structure has a significant impact on how the total value of a company is allocated between equity and debt. A more comprehensive measure is enterprise value (EV), which gives effect to outstanding debt, preferred stock, and other factors. For insurance firms, a value called the embedded value (EV) has been used.
Market capitalization is used by the investment community in ranking the size of companies, as opposed to sales or total asset figures. It is also used in ranking the relative size of stock exchanges, being a measure of the sum of the market capitalizations of all companies listed on each stock exchange. In performing such rankings, the market capitalizations are calculated at some significant date, such as June 30 or December 31.
The total capitalization of stock markets or economic regions may be compared with other economic indicators. The total market capitalization of all publicly traded companies in the world was US$51.2 trillion in January 2007 and rose as high as US$57.5 trillion in May 2008 before dropping below US$50 trillion in August 2008 and slightly above US$40 trillion in September 2008. In 2014 and 2015, global market capitalization was US$68 trillion and US$67 trillion, respectively.
LARGEST COMPANIES BY MARKET CAP FAQ
What Does Market Cap Indicate?
Market cap is short for market capitalization. Market cap is equal to a company’s total stock shares outstanding multiplied by its current stock price.
Does Market Cap Change Everyday?
Market cap changes everyday due to the fact that it is based on a company’s stock price.
What Do Shares Outstanding Mean?
Shares outstanding refers to the total number of stock shares held by a company’s shareholders.
How Does Market Cap Increase?
Market cap increases when a company’s stock price increases
INVESTORS SHOPPING LIST [Amid Pandemic Crisis 2020]
In the List are 40+ Among the Top Best Tech Stocks with the Best Value, Fastest Growth, Most Momentum, Stay-At-Home Quality, Stocks to Watch, etc. in 2020.
40 Cheap Stocks to Buy TodayStocks Shopping List40 Stocks to Buy Today at a Bargain.More Popular Stocks | Apple | Tesla | Google | Facebook | Microsoft | Amazon | Alibaba | Walmart | Netflix | Disney | Starbucks | Mc Donalds | Paypal | Visa | More..| 1,000+...
The World’s richest and Billionaire investors are having their shopping spree on stocks in the market as they see massive opportunity on bargains of a lifetime.
This website contains affiliate links. The links may appear on different posts and pages on this site. We may receive compensations in the form of advertising fee, affiliate commission or other rewards on sales via the hypertext links to our vendor-partners. We do not markup any prices from any vendors or company-providers. Thus, there is no additional charge on your part. The best thing is that, your support in purchasing through these links enables us to keep tons of the site information material contents for FREE; Your support can also help us to cover the costs in operating and maintaining this website.
Documents and other contents posted on this site may also contain links to information created and maintained by Third-Parties. These links are provided solely for your convenience and for your information purposes only. This site is not endorsed by anyone or by any company. This is an independent site. All information (including prices, dates, times, availability) contained on this site are unofficial and subject to change without notice. Please see our FULL DISCLAIMER. Thank you and we appreciate your support!.
Trading in the financial markets (including trading on margin) provides a wide range of opportunities and enables investors who are ready to take risks to make high profits. However, it carries a potentially high level of risk of loss at the same time. You should never invest money that you cannot afford to lose. Therefore, prior to trading you should take into careful consideration whether such operations are suitable for you in terms of your level of knowledge and financial situation. Your due diligence and education on Trading & Investments is therefore highly recommended.