Market capitalization, commonly calledĀ market cap, is the market value of aĀ publicly traded company’sĀ outstanding shares.
Market capitalization is equal to theĀ share priceĀ multiplied by the number of shares outstanding.
Since outstandingĀ stockĀ is bought and sold in public markets, capitalization could be used as anĀ indicatorĀ of public opinion of a company’sĀ net worthĀ and is a determining factor in some forms ofĀ stock valuation.
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