MASTERCLASS – Market Capitalisation – The Size of a Company

Market Capitalisation – The Size of a Company

Market Capitalisation –
The Size of a Company

In our Masterclass today we look at Market Capitalisation – also known as Market Value – which is a measure of the value and size in dollars of a company, and we calculate it by multiplying the number of either the outstanding shares or the floating (public) shares by the current price per share. So the capital value changes as the share price changes. It is a basic measure of a company – a way of determining a value of a company.

As an example, a company with 100 million shares of floating stock that has a current market value of $22 a share would have a market capitalization of $2.2 billion.

Outstanding shares include all the stock held by shareholders, while floating shares are those outstanding shares that actually are available to trade, ie. “publicly” available.

Market Capitalization, or Market Cap, is one of the criteria investors can use to choose a portfolio of stocks – often categorized as small-, mid-, and large-cap. Generally, large-cap stocks are considered the least volatile and small caps the most volatile.

Market Capitalization is sometimes used interchangeably with Market Value, in explaining, for example, how a particular index is weighted or where a company stands in relation to other companies.

Advertisements

About SuperBenefitnews

Self-Managed Superannuation Service Providers in Australia. SuperBenefit provides a wholistic SMSF assistance, education and administration service continuum - 1. “assistance” is help of whatsoever nature where our overall SMSF experience and knowledge enables us to provide assistance/help without any legal (or “license”) limitations. 2. “education” involves providing knowledge through teaching, coaching and mentoring about all matters SMSF, including (but not limited to) investment issues such as equities and property, 3. “administration” encompasses all admin aspects of legally required SMSF trustee and member record keeping including (but not limited to) audit and ATO matters. In keeping with our key point that SuperBenefit does not provide Financial Advice, where issues arise from 1, 2, and/or 3 above Indicate a need for a legally authorized provider (such as a Financial Adviser) and the client does not have their own service provider, the client can utilize SuperBenefit’s ‘Connect Assist’ … SuperBenefit, in itself, does not provide Financial Advice, but it does provide the wherewithal for great SMSF service. WE do not provide Financial Advice or any other service that requires a legally authorized provider. However, where such advice or service is required we have our ‘Connect Assist’, a SuperBenefit resource we use to connect clients to a Licensed Advisor or other legally authorised service provider. Call us 0407 361 596, no obligation FREE Connection call to see how we can help you!
This entry was posted in Investing - Stock Fundamentals, Masterclass Investment, SMSF Investing and tagged , . Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s