Market Capitalization

Market capitalization is the value of all outstanding shares. It is calculated by multiplying the number of shares issued and outstanding with the current market price of the share. Market capitalization almost always differs markedly from a company’s net worth because market capitalization is what investors are actually willing to pay for the company. Stocks are often classified by the size of their market capitalization as large-cap stocks, mild-cap stocks, and small-cap stocks.

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