What is market capitalization? Importance and what it tells investors - Business Insider

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Market capitalization tells you how much a company is worth, and whether buying its stock suits your overall investing strategy

Stocks are often classified by their market caps, and each market-cap category offers different risks and rewards for investors.Market capitalization is the total value of all a company's stock: the number of outstanding shares by the share price.

Of course, a variety of ways exist to evaluate public companies and their stock. One of the most common is by market capitalization, or "market cap" for short. A company's market cap is often included in its online stock listing or company profile. But figuring it out isn't all that hard. To calculate the market capitalization you simply multiply the number of shares outstanding by the price per share.

 

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