Market Capitalisation
Definition
What is Market Capitalisation?
The market valueThe price at which an asset could trade in the market at a given time. of a company's outstanding shares, calculated as share priceThe market price at which one share is quoted or traded. multiplied by shares outstandingThe total shares currently held by all shareholders, excluding shares retired by the company..
Example in practice
How This Looks in Practice
A company with one billion shares at ₦20 has a ₦20 billion market capitalisation.
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Related Terms
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.