Market capitalization, AKA "market cap," is a metric used to evaluate the total value of a publicly traded company. It is calculated by multiplying the company's current share price by the total number of shares. Market cap essentially gives certain stocks “Weight,” and allows investors to put an additional value on them as compared to other companies. A higher market cap generally implies greater investor confidence and a larger economic footprint. Market cap is commonly used by investors, analysts, and financial institutions to assess investment opportunities and make informed decisions based on a company's perceived value and potential for growth.
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What is Market Capitalization?
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Market capitalization, AKA "market cap," is a metric used to evaluate the total value of a publicly traded company. It is calculated by multiplying the company's current share price by the total number of shares. Market cap essentially gives certain stocks “Weight,” and allows investors to put an additional value on them as compared to other companies. A higher market cap generally implies greater investor confidence and a larger economic footprint. Market cap is commonly used by investors, analysts, and financial institutions to assess investment opportunities and make informed decisions based on a company's perceived value and potential for growth.