Market Cap

(Market Capitalisation)
The value that the market has ascribed a company. It has nothing to do with the company’s earnings, revenue, debt, or equity. It is simply how much the market (collectively) is willing to pay for the company. Market Cap is calculated: Shares Price x No Shares on issue. Eg, if Company XYZ has a share price of $5.00 and there are 100,000,000 shares outstanding, its market cap would be $500M.

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