How Do You Calculate Market Capitalization In The Stock Market?
Establishing the monetary size of a corporation is the basis for evaluating a company’s overall value. People may just look at the price of a company’s stock and think that determines value. Market capitalization is the overall value of a company according to the market. Read on to learn more. Ascertain the current price of the company’s stock. This information is readily available from the company’s web site, newspaper, or financial web site. Determine the total number of outstanding shares of stock for a company. Again, this information is readily available from the company’s web site, newspaper, or financial web site. Multiply the total number of shares outstanding by the current share of the company’s stock. This number is the company’s market capitalization. In essence, it is how much it would cost if a company or individual purchased all shares at the current stock price. For example, if there are 2 million outstanding shares of the company and the current price is 20 dollars, th
