Market capitalization
Share price multiplied by total shares outstanding.
Plain languagePractical exampleConnected reading
01
What is it?
Share price multiplied by total shares outstanding.
02
Why does it matter?
It represents listed equity value and supports comparisons such as index weight.
03
How should it be read?
Check share classes, capital changes and price date.
04
Common mistake
Treating market capitalization as enterprise value or a guaranteed sale price.
A simple example
Fifty million shares at 40 imply a market cap of 2 billion.