What is Market Cap? Meaning.
Market Cap is a business term that refers to the aggregate
value of a firm's outstanding common shares. In essence, market capitalization
reflects the total value of a firm's equity currently available on the market.
This measure differs from equity value to the extent that a firm has outstanding
stock options or other securities convertible to common shares. Market capitalization
is calculated by multiplying the number of outstanding common shares of the
firm and the current price of those shares .
Although frequently calculated and stated as a measure of
the size of a company it is important to note that it is not necessarily a
realistic estimate of the value of the business as an entity. It may fluctuate
widely from day to day and, because it is based on trading in a small proportion
of the company’s shares, does not necessarily represent what a purchaser of
the entire company would have to pay for it. Market capitalization may also
increase or decrease for reasons unrelated to performance such as acquisitions,
divestitures and stock repurchases.
|
Special Interest Group
|
Join
|
|
Market Cap Special Interest Group.
Special Interest Group (13 members)
|
|
|
The top-rated topics about Market Cap. Here you will find the most valuable ideas and practical suggestions.
|
|
|
Advanced insights about Market Cap. Here you will find professional advices by experts.
|
|
|
Various sources of information regarding Market Cap. Here you will find powerpoints, videos, news, etc. to use in your own lectures and workshops.
|
|
|
Automatically jump to further useful sources regarding Market Cap.
|
|
|
|
|
|
News
|
Videos
|
Presentations
|
Books
|
More
|
|
|
|
Compare also: Market Value Added
| Treasury Stock
|
|
|
Copy this into your study materials:
and add a hyperlink to:
|
|
|
Link to this knowledge center
|
|
Copy this HTML code to your web site:
|
|
|
|
|
|
|
|
4
1 comments