Market Capitalization (Market Cap)
This is the total sum that the investor should pay to get all of the shares of a firm for the current market price.
The company’s market cap on a said date is the total amount of money an investor should pay for the whole of the company with respect to its stock price on that particular date.
For instance, the market cap for “Robot” (ticker: ROB) on March 8, 2008 is given in the following table:
Calculating the Market Cap of “ROBOT” on March 8, 2008
| Total Number of Shares (1)
(In Millions) |
Price Per Share (2)
(In $) |
(3) = (1) x (2)
Market Cap (in millions of $) |
| 668.85 | $72.40 | 48,424 |
