what is the meaning of market capitalization? is it the same as net worth of a company?
2 Answer(s)
Binny
No market cap is not the same as net worth.
Net worth is the book value (Assets - Liabilities).
Market Cap = Number of shares of the company x Share price of the company
The market cap of a company is the value of all the company shares trading in the stock market. The market cap could be higher or lower than the book value. In most cases it is higher.
Jun 21 2013 10:32 AM
Net worth is the book value (Assets - Liabilities).
Market Cap = Number of shares of the company x Share price of the company
The market cap of a company is the value of all the company shares trading in the stock market. The market cap could be higher or lower than the book value. In most cases it is higher.
Binny
For example you can get Apple's market cap here - https://www.google.com/finance?q=aapl&ei=Jt7DUfCoAsqxkgWsTg
For book value you need to look at the balance sheet
Jun 21 2013 10:32 AM
For book value you need to look at the balance sheet