Market Capitalization
A corporation’s market capitalization, or “market cap,” is the total market value of the corporation’s equity, determined by multiplying the market price per share and the total number of shares outstanding:
market capitalization = (market price per share) x (shares outstanding)
Market capitalization is frequently used as a crude measure of a company’s value, or at least its value in the eyes of investors.
Market cap is not a perfect measure of
