Market capitalisation is defined as value of all listed shares on the country’s exchanges. It is computed on a daily basis. Market capitalisation of a particular company on a particular day can be computed as product of the number of shares outstanding and the closing price of the share. Here the number of outstanding shares refers to the issue size of the stock.
Market Capitalisation = Closing price of share * Number of outstanding shares
Similarly, to compute the market capitalisation of all companies listed on an Exchange we aggregate the market capitalisation of all the companies traded on the Exchange.
Market capitalisation of a complete share market of a country can be defined as the market capital of shares divided by the GDP.
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Market Capitalisation = Closing price of share * Number of outstanding shares
Similarly, to compute the market capitalisation of all companies listed on an Exchange we aggregate the market capitalisation of all the companies traded on the Exchange.
Market capitalisation of a complete share market of a country can be defined as the market capital of shares divided by the GDP.
Remember to bookmark us best market tips which can help you become an expert in the market.
