market capitalization
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Market capitalization
Market capitalization, or market cap, is a measurement of
corporate
or
economic
size
equal to the
share price
times the number of
shares outstanding
of a
public company
. As owning
stock
represents
owning
the company, including all its
assets
, capitalization could represent the public opinion of a company's
net worth
and is a determining factor in
stock valuation
. Likewise, the capitalization of
stock markets
or
economic region
s may be compared to other
economic indicators
. The global market capitalization was $51.225 trillion in March 2007 , indicating a dominant force in the
global economy
.
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®
and is licensed under the
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Campbell R. Harvey's Hypertextual Finance Glossary
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Market capitalization
The total dollar value of all
outstanding
shares
. Computed as shares times current
market price
. It is a measure of corporate size.
Copyright © 2000,
Campbell R. Harvey
. All Rights Reserved.
WordNet 2.0
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market capitalization
Noun
1. an estimation of the value of a business that is obtained by multiplying the number of shares outstanding by the current price of a share
(synonym) market capitalisation
(hypernym) capitalization, capitalisation
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