Market Capitalization

This is the total value of the company in the market, and depending on the number of shares issued, it is where its stock derives its value from. When a company is being bought out by another corporation at a premium or more than its current market value, it is reflected by a huge spike on the share price of the company being bought. Market cap should be the primary figure to use when comparing the size of the company. A company with a stock price trading at $142 doesn't mean it is greater in size than a company whose stock is trading at $25. For example, Intel corporation (INTC) has a market value of over 149 billion and its stock is trading at $25 and change. While, Sears Holdings Corp.'s (SHLD) market value is just over 20 billion dollars. That is only 13.4% of Intel Corp.'s market value but yet, Sears Holdings corp.'s stock is trading at $142 per share.

Previous | Next

Stocks | Forex | Options | Economics | Bonds | History | Language learning | Technology | Technical Analysis | Fundamental Analysis
Copyright © 2014 econtrader | Risk disclosure | Terms of Use