MARKET CAPITALIZATION (MARKET CAP)

1. Ongoing market valuation of a public firm with publicly traded shares calculated as outstanding shares held by the shareholders counted times the current per share market price. It is, however, neither the reasonable price of the firm nor a realistic estimate of the firm’s actual size. Trading in only a fraction of the firm’s total outstanding shares shows in a share’s market price. 2. Tally of all securities traded on a financial market as the current market value.

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