Market capitalization refers to the value of a company's outstanding shares.

Market capitalization reflects the theoretical cost of buying all of a company's sharesbut usually is not what the company could be purchased for in a normal merger transaction. To estimate what it would cost for an investor to buy a company outright, the enterprise value calculation is more appropriate.

Thus market capitalization is a better measure of size than worth. That is, market capitalization is not the same as market valuewhich earn money with microstock generally only be assigned when the company is actually sold.

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World stock market capitalizations - Business Insider

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How it works Example: The formula for market capitalization is: Most Popular Calculators Amortization Schedule Calculator: What Is the Repayment Schedule for My Mortgage? Compound Annual Growth Rate CAGR Calculator.

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