What does market capitalisation mean?
The term market capitalisation is used frequently in the financial media. In this article we discuss what this means and the importance of market capitalisation when analysing a company. Definition Market capitalisation is calculated by the number of shares outstanding multiplied by the market price of one share. It simply reflects the total dollar amount of all the outstanding shares of a company at the market price. Market Capitalization = number of shares outstanding * market price of one share …