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Market capitalization is the public consensus about the equity value of a company. It is calculated by multiplying the share prices of the company with the numbers of shares outstanding. It is also known as market cap or capitalized. It gives a measure to evaluate a company.
It gives the public opinion about the company like the net worth of the company and the stock valuation of the share prices of the company. Market capitalization of all of the companies in a state is carried out to compare it with the economic indicators. Fir example, market capitalization recorded in US is May, August and September 2008 are US$57.5 trillion, US$50 trillion and US$40 trillion respectively.
It gives the public opinion about the company like the net worth of the company and the stock valuation of the share prices of the company. Market capitalization of all of the companies in a state is carried out to compare it with the economic indicators. Fir example, market capitalization recorded in US is May, August and September 2008 are US$57.5 trillion, US$50 trillion and US$40 trillion respectively.
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