Market capitalization is one of the most fundamental measures used by investors to determine the value of a company.It represents the total value of all outstanding shares of a company's stock and is a measure of a company's size.If you are new to investing, understanding market capitalization can help you make informed investment decisions.In this blog post, we will explore what market capitalization is, how it is calculated, and why GM's market capitalization changed.īy the end of this post, you will have a better understanding of why market capitalization matters and how it can impact your investments.What is market capitalization?Market capitalization is a term used to describe the size of a publicly traded company.It is calculated by multiplying the company's total outstanding shares by its current stock price.This gives investors and analysts a quick way to gauge the value of a company and compare it to other companies in the same industry or market. Yesterday, General Motors GM had a market capitalization of 57B, based on 139B shares at a price of 4089
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