market capitalization

market capitalization definition - business

market capitalization

The total value of all of a firm's outstanding shares, calculated by multiplying the market price per share times the total number of shares outstanding. For example, at a current price of $50 for each of its 20 million shares of outstanding stock, a firm has a market capitalization of $50 × 20 million, or $1 billion. Also called market value.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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