What is "market capitalization"?
You probably think that you have never heard of the term
“market capitalization” before. You have! When you are
talking about “mid-cap”, “small-cap” and
“large-cap” stocks, you are talking about market
capitalization!
Market cap or market capitalization is simply the worth of a company in
terms of it’s shares! To put it in a simple way, if you were to
buy all the shares of a particular company, what is the amount you
would have to pay? That amount is called the “market
capitalization”!
To calculate the market cap of a particular company, simply multiply
the “current share price” by the “number of shares
issued by the company”! Just to give you an idea, ONGC, has a
market cap of “Rs.170,705.21 Cr” (when this article was
written)
Depending on the value of the market cap, the company will either be a
“mid-cap” or “large-cap” or
“small-cap” company! Now the question is, how do YOU
calculate the market cap of a particular company? You don’t! Just
go to a website like MoneyControl.com
and look up the company whose market cap you are interested in finding
out! The figure in front of “Mkt. Cap” will be the market
cap value.
Having seen what market cap is and how to find out the market cap of a
particular company, let us try to understand the concept of
“free-float market cap”
Next - What is "free float market cap"? >>
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