Equity Investing
Float-Adjusted Market Capitalisation
Definition
What is Float-Adjusted Market Capitalisation?
Market capitalisationThe market value of a company's outstanding shares, calculated as share price multiplied by shares outstanding. calculated using only shares available to public investors.
Example in practice
How This Looks in Practice
An index gives less weight to a company whose controlling owner holds most shares.
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Related Terms
Equity Investing
Common Stock
A share that usually carries voting rights and a residual claim on a company's profits and assets.
Equity InvestingOrdinary Share
The standard ownership share in a company, generally equivalent to common stock.
Equity InvestingPreferred Stock
A class of share that usually has priority over ordinary shares for dividends and liquidation proceeds.
Equity Capital MarketsInitial Public Offering
The first public sale of a private company's shares, after which the shares may trade on an exchange.