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Teaching Economics

Explanations

Market Capitalisation of a Business

Geoff Riley

1st September 2015

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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.

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Geoff Riley

Geoff Riley FRSA has been teaching Economics for nearly forty 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 and Revision conferences in the UK and overseas.

@tutor2uGeoff

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