What is Market Capitalization of xyz company in share market? what is its significance?

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What is Market Capitalization of xyz company in share market? what is its significance?

2007-03-08 04:45:23 · 2 answers · asked by dr sachpw 3 in Business & Finance ➔ Investing

2 answers

It is the total value of all shares of the stock. In other words, the number of shares outstanding times the price per share. It's significance is that it indicates what investors as a group currently think is the value of the company.

2007-03-08 04:49:53 · answer #1 · answered by Dave W 6 · 1⤊ 0⤋

Market Cap = total value of the company. If XYZ has 20 million shares outstanding and the price per share is $10, the market cap is $200 million. That is how much you are payign for the company. (You may be only buying .0000000001% of it, but that's still how much it costs.)

2007-03-08 05:25:13 · answer #2 · answered by Byron W 3 · 0⤊ 0⤋