Stock Market Investors » Glossary of Stock Terms » What is Market Capitalization?

What is Market Capitalization?

When you decide on the investment in a particular company you should study its market capitalization (also known as market cap). The latter represents a measure of the company's size. In order to estimate it you should use the number of outstanding shares to multiple the current price of the stock. For example, if the price of a particular stock is $30 and there are 200,000,000 outstanding shares, then the market cap of the company will be $6.0 billion.

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