Market Value: key terms, formulas and examples
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.
Example
1 million shares at 50 each give a market cap of 50 million.
Takeaway
Compare companies by market cap, not share price alone.
Key terms
- Market capitalization
- Share price times number of shares: a company's market value.
- 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
Market capitalizationPrice × Shares
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