what is diffrence between market captalization and shareholder equity of a company
1 Answer(s)
Sonia
Market Capitalization:
Market capitalization is the market value of a company at any particular moment in time. You can determine a company's market capitalization by multiplying the market price of a single share of company stock by the total number of the company's outstanding shares. A company's market capitalization may fluctuate from day to day, or even from moment to moment, based on the current market price of its stock.
Shareholder Equity:
Shareholder equity is sometimes referred to as a company's net worth. A company's shareholder equity is calculated by subtracting the company's liabilities from its assets. The remainder is shareholder equity. The shareholder equity per share is determined by dividing the total shareholder equity by the number of outstanding shares. Shareholder equity is not influenced by the market price of the company stock.
May 28 2014 10:00 AM
Market capitalization is the market value of a company at any particular moment in time. You can determine a company's market capitalization by multiplying the market price of a single share of company stock by the total number of the company's outstanding shares. A company's market capitalization may fluctuate from day to day, or even from moment to moment, based on the current market price of its stock.
Shareholder Equity:
Shareholder equity is sometimes referred to as a company's net worth. A company's shareholder equity is calculated by subtracting the company's liabilities from its assets. The remainder is shareholder equity. The shareholder equity per share is determined by dividing the total shareholder equity by the number of outstanding shares. Shareholder equity is not influenced by the market price of the company stock.