Market Capitalization Market capitalization, commonly referred to as market cap, serves as a pivotal financial metric in assessing the size and worth of publicly traded companies. It offers investors valuable insights into a company's value and its relative position within the market. This comprehensive article aims to demystify the concept of market capitalization by exploring its definition, calculation methods, and significance for investors. Understanding market capitalization empowers investors to make informed decisions when evaluating investment opportunities and constructing diversified portfolios. What is Market Capitalization? Market capitalization denotes the total value of a company's outstanding shares of stock in the market. It is derived by multiplying the company's current share price by the total number of outstanding shares. Market cap encapsulates the market's collective perception of a company's worth, taking into account factors such as size, ...
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