ATAR Notes: Forum

VCE Stuff => VCE Business Studies => VCE Subjects + Help => VCE Business Management => Topic started by: jackinthepatch on February 23, 2009, 09:06:13 pm

Title: Market Capitalisation
Post by: jackinthepatch on February 23, 2009, 09:06:13 pm

Hey all. Just wondering if anyone could give me a brief summary of market capitalisation. A definition, and how it's calculated would be great. This is just one thing I have been unable to find a proper definition of.
Thanks in advance.

Title: Re: Market Capitalisation
Post by: brendan on February 23, 2009, 09:15:52 pm

market cap = (number of outstanding shares)*(market price per ordinary share)

Title: Re: Market Capitalisation
Post by: jackinthepatch on February 23, 2009, 09:23:39 pm

Ok thanks, but what does number of outstanding shares refer to?

Title: Re: Market Capitalisation
Post by: brendan on February 23, 2009, 09:29:25 pm

im not sure how to break it down further there...

Title: Re: Market Capitalisation
Post by: mypurpleundercracka on February 23, 2009, 09:32:50 pm

The definition isn't in my text book, my teacher said its calculated by the number of shares times the value of shares

Title: Re: Market Capitalisation
Post by: brendan on February 23, 2009, 09:35:33 pm

http://www.investopedia.com/terms/o/outstandingshares.asp

Title: Re: Market Capitalisation
Post by: jackinthepatch on February 23, 2009, 09:41:13 pm

Ah that link cleared it up. Thanks guys.