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Market
Capitalization |
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The
value of a company based on the total number of outstanding shares
multiplied by the value of each share. |
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Due to the volatile
nature of the stock market this value will be constantly changing,
for example: ‘Company A’ has one thousand outstanding shares and each share costs $5. Market Capitalization would be $5 000 (1000* 5 = 5000). If over the next three weeks share price jumps to $5.50 market cap would rise to $5 500 (1000* $5.50 = 5 500). |
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