Market Cap

Knowledge Center

   

Description of Market Cap. Explanation.

Contents

Premium

 

Definition Market Cap. Description.


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.


Market Cap Special Interest Group


Special Interest Group (13 members)


Market Cap Forum  

Recent topics

  Market Cap Calculation Example
A firm reports a book value of shareholders' equity of $850 million with 25 million of shares outstanding. Those shares are traded at $45 each in the ...
     
 

Best Practices - Market Cap

Expert Tips - Market Cap



Advance yourself in business administration and management



Resources - Market Cap
 

News about Market Cap


     
 

Videos about Market Cap


     
 

Presentations about Market Cap


     
 

Books about Market Cap


     
 

More about Market Cap


     



Accelerate your management career



Compare also: Market Value Added  |  Treasury Stock

Special Interest Group Leader

 
 

Return to Management Hub: Finance & Investing


More on Management  |  Return to Management Dictionary  | 

 

This ends our Market Cap summary and forum.



About 12manage | Advertising | Link to us / Cite us | Privacy | Suggestions | Terms of Service
© 2018 12manage - The Executive Fast Track. V15.0 - Last updated: 10-12-2018. All names ™ of their owners.