What is market capitalization?

Q: What is market capitalization?


A: Market capitalization is a measure of the size of a business corporation.

Q: How is market capitalization calculated?


A: Market capitalization is calculated by multiplying the price of one share of stock by the number of shares of stock in a public company.

Q: What does it mean to own stock in a company?


A: Owning stock in a company means owning a part of the company.

Q: What does market capitalization show?


A: Market capitalization shows the public opinion of a company's value.

Q: What was the total market capitalization of all publicly traded companies in the world in January 2007?


A: The total market capitalization of all publicly traded companies in the world was US$51.2 trillion in January 2007.

Q: What happened to the total market capitalization between May 2008 and September 2008?


A: The total market capitalization rose to US$57.5 trillion in May 2008, but by September 2008 it had dropped to a little more than US$40 trillion.

Q: Does market capitalization fluctuate over time?


A: Yes, market capitalization can fluctuate over time depending on various factors that affect the value of a company.

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