Market capitalization (market cap),
Definition of Market capitalization (market cap):
The sum of the current market value of all the securities traded in the financial markets.
The constant market value of a corporation (whose shares are publicly traded) is calculated by multiplying the number of outstanding shares (held by shareholders) by the number of existing shares. However, this is not necessarily the price that the buyer will pay for the entire contract. And this is not a realistic estimate of the actual size of the company, since the stock market price is based on trading only a small portion of the company's total outstanding shares.
The value of a publicly held company is calculated by multiplying the total number of shares by the current share price.
How to use Market capitalization (market cap) in a sentence?
- Knowing the entire market capitalization can help you understand what the situation might be in the near future.
- The company's stock closed at 18p on Friday with a market capitalization of 9.15 million.
- Market capitalization was achieved in a relatively short period of time due to teamwork.
- Being able to take advantage of large market capitalization may be worth it, but it can also be risky.
Meaning of Market capitalization (market cap) & Market capitalization (market cap) Definition