Market capitalization (market cap) represents the total value of its outstanding shares on the market.<\/span> Market capitalization is equal to the share price multiplied by the number of outstanding shares.\u00a0The outstanding stock is buying and selling in public markets. Hence, capitalization is a valid indicator of public opinion of a company’s net worth.<\/span><\/p>\n And, hence, market capitalization (market cap) is a deciding factor stock valuation at some point.<\/span><\/p>\n The investment community can use market capitalization in ranking the size of companies. In contrast to sales or total asset figures. <\/span><\/p>\n Also, in ranking the relative size of stock exchanges. It is a measure of the sum of the market capitalizations of all companies on each stock exchange.<\/p>\n The total market capitalization of all publicly-traded companies in the world was US$51.2 trillion in January 2007. And rose as high as US$57.5 trillion in May 2008. Before dropping below US$50 trillion in August 2008. <\/span><\/p>\n And slightly above US$40 trillion in September 2008. In 2014 and 2015, global market capitalization was US$68 trillion and US$67 trillion, respectively.<\/span><\/p>\n Investors tend to split stocks into categories based on their market caps: large-cap, mid-cap, and small-cap. <\/span><\/p>\n The terms mega-cap and micro-cap have also since come into common use and as well as nano-cap.\u00a0The boundaries between these categories often vary. <\/span><\/p>\n Different numbers are used by different indexes, there is no official definition of, or full consensus agreement about, the exact cutoff values.<\/span><\/p>\n Market cap reflects only the equity value of a company. <\/span><\/p>\n It is important to remember. The choice of the capital structure is significantly impacting how the overall value of a company is allocated between equity and debt.<\/span><\/p>\n A more comprehensive measure is enterprise value (EV). That gives effect to outstanding debt, preferred stock, and other factors. <\/span><\/p>\n For insurance firms, for example, a term the embedded value (EV) is in use.<\/p>\n","protected":false},"excerpt":{"rendered":" DEFINITION of Market capitalization (market cap) Market capitalization (market cap) represents the total value of its outstanding shares on the market. This is the market value of a publicly-traded company’s outstanding shares. WHAT IT IS IN ESSENCE Market capitalization is equal to the share price multiplied by the number of outstanding shares.\u00a0The outstanding stock is […]<\/p>\n","protected":false},"author":4,"featured_media":6984,"parent":3034,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"content-type":"","_exactmetrics_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"footnotes":""},"class_list":["post-3441","page","type-page","status-publish","has-post-thumbnail","hentry"],"yoast_head":"\n
\nThis is the market value of a publicly-traded company’s outstanding shares. <\/span><\/p>\nWHAT IT IS IN ESSENCE<\/b><\/h4>\n
The total capitalization of stock markets or economic regions is comparable with other economic indicators.<\/span><\/h4>\n
HOW TO USE<\/b><\/h4>\n