Definition
Market capitalization, often referred to as 'market cap', is calculated by multiplying the total number of a company's outstanding shares by the current market price of one share. It represents the total value that investors place on a company's equity.
Formula
市值 = 股价 × 流通股总数
Example
If a company has 10 million shares outstanding and the current stock price is $50, the market cap would be $500 million (10M × $50).
FAQ
What is Market Capitalization?
The total market value of a company's outstanding shares of stock.
How do you calculate Market Capitalization?
A common formula for Market Capitalization is: 市值 = 股价 × 流通股总数
Why is Market Capitalization important?
Market Capitalization helps investors evaluate company size and make more informed decisions.