Market Capitalization

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Definition of 'Market Capitalization'

Market Capitalization is the value of a company. To value a company simply take the number of shares that have been issued and multiply that by the current share price.

Say that Company A has 1,000,000 issued common stock and that stock is currently trading at exactly $50. This means that Company A has a Market Capitalization of $50,000,000. If you wanted to buy Company A outright from its owners it would (theoretically) cost you $50m.

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