Explanations
Market Capitalisation of a Business
Geoff Riley
1st September 2015
Market capitalization (often shortened to market cap) is a measurement of the value of the voting ownership interest that shareholders hold in a business enterprise. It is equal to the current market share price times the number of shares outstanding (i.e. shares that have been authorized, issued, and purchased by investors) of a publicly traded company.
Geoff Riley
Geoff Riley FRSA has been teaching Economics for over thirty years. He has over twenty years experience as Head of Economics at leading schools. He writes extensively and is a contributor and presenter on CPD conferences in the UK and overseas.
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