Market Capitalization

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Definition: Market Capitalization

Market capitalization may be defined as the total dollar value of the shares outstanding of a company. In other words, it is defined as the total outstanding shares of the company multiplied by the market value of each share.

Market capitalization= company's shares outstanding * current market price of one share

For example: If a company X has 10000 shares of market value of 10$ each, the total market capitalization of the company X will be 10000*10$= 100000$.

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