Basically it refers to the value of a company’s outstanding shares.It is calculated as the product of current stock price and the shares outstanding.Say for example a company’s stock price on a given day is Rs 100,and it has 1000000 outstanding shares then the market capitalization of the company is Rs 100000000 or Rs 10 crores. The shares of a company that have been issued and are in the hands of the public are called outstanding stock,or shares outstanding. Market capitalization reflects the theoretical cost of buying all of a company’s shares, but usually is not what the company could be purchased for in a normal merger transaction.So its a better measure of size of a company than worth.

Popularity: 1% [?]

Share and Enjoy: These icons link to social bookmarking sites where readers can share and discover new web pages.
  • StumbleUpon
  • Digg
  • del.icio.us
  • Technorati
  • Netvouz
  • DZone
  • Furl
  • Reddit
  • YahooMyWeb
  • ThisNext
  • MisterWong
  • IndianPad

If you're new here, you may want to subscribe to my RSS feed. Thanks for visiting!

Powered by