Explain market capitalization

Answer 1

Market capitalization refers to the total market value of a company's outstanding shares of stock. It is calculated by multiplying the total number of shares outstanding by the current market price per share. Market capitalization is used to measure a company's size and value, and is often used as a determining factor for investment decisions. Companies with a higher market cap are considered to be more valuable and often have a larger influence on the overall stock market. However, it should be noted that market capitalization is not always a perfect representation of a company's intrinsic value or performance.