Market capitalization

Market capitalization, sometimes referred to as market cap, is the total value of a publicly traded company's outstanding common shares owned by stockholders.[2]

The New York Stock Exchange on Wall Street, world's largest stock exchange in terms of total market capitalization of its listed companies.[1]

Market capitalization is equal to the market price per common share multiplied by the number of common shares outstanding.[3][4][5] 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.


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