What is Market capitalization?
Market capitalization: Share price times number of shares: a company's market value.
Where Market capitalization fits
Market capitalization is part of Market Value in Finance. Market capitalization is share price times number of shares: the market's price tag for a company. A unicorn is a private startup valued above a billion dollars.
Practical tip
Compare companies by market cap, not share price alone.
Related terms
- Unicorn
- A private startup valued at over a billion dollars.
- Shareholder
- A person or firm that owns shares in a company.
- Stock exchange
- A marketplace where shares are bought and sold.
- Ticker symbol
- A short code that identifies a company's stock on an exchange.
Formulas you will use with it
Test yourself
Which term means: “Share price times number of shares: a company's market value.”?
Unicorn · Market capitalization · Stock exchange
Answer: Market capitalization
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