Market capitalisation

Market capitalisation (market cap) is the total value of the shares of a company, sector or market.Market caps are also calculated for sectors and stock market in order to compare sizes and as part of the process of calculating indices.

Market capitalization represents the public consensus on the value of a company's equity. An entirely public corporation, including all of its assets, may be freely bought and sold through purchases and sales of stock, which will determine the price of the company's shares. Its market capitalization is the share price multiplied by the number of shares in issue, providing a total value for the company's shares and thus for the company as a whole.

A stock market or equity market or share tips is a public (a loose network of economic transactions, not a physical facility or discrete) entity for the trading of company stock (shares) and derivatives at an agreed price; these are securities listed on a stock exchange as well as those only traded privately.

Market capitalization, or market cap, is simply the measurement of a company’s total value or worth. If a company wants to buy out another company, they are going to be paying the market cap for it.

Many kinds of stocks are traded on stock exchanges. The price, market capitalization, and the stock exchanges where these stocks are traded vary. Penny stocks are stocks with a low value and a low market capitalization. They are subjected to limitations in terms of listing and they have to comply with only a few regulatory standards.