Editing Market capitalization (section)

{{short description|Total value of a public company's outstanding shares}}
{{Use American English|date=December 2022}}
{{Use mdy dates|date=February 2015}}
[[File:New York Stock Exchange August 2017 02.jpg|thumb|The [[New York Stock Exchange]] on [[Wall Street]], the world's largest [[stock exchange]] in terms of total market capitalization of its listed companies, as of 2010<ref>{{cite web|title=Market highlights for first half-year 2010|url=http://www.world-exchanges.org/files/file/stats%20and%20charts/July%202010%20WFE%20Market%20Highlights.pdf |archive-url=https://web.archive.org/web/20130722235155/http://www.world-exchanges.org/files/file/stats%20and%20charts/July%202010%20WFE%20Market%20Highlights.pdf |date=July 2010|archive-date=July 22, 2013 |access-date=May 29, 2013 |publisher=World Federation of Exchanges|df=mdy-all}}</ref>]]
'''Market capitalization''', sometimes referred to as '''market cap''', is the total value of a [[publicly traded company]]'s [[shares outstanding|outstanding common shares]] owned by stockholders.<ref name=":1">{{cite book |last1=Graham |first1=John R |last2=Smart |first2=Scott B. |last3=Megginson |first3=William J. |title=Corporate Finance |date=2010 |publisher=South-Western Cengage Learning |location=Mason OH |isbn=9780324782967 |page=387 |edition=3rd}}</ref> 

Market capitalization is equal to the [[share price|market price per common share]] multiplied by the number of common shares outstanding.<ref name=":1"/><ref name="investmcd">{{cite web|title=Market Capitalization: What It Means for Investors|url=http://www.investopedia.com/terms/m/marketcapitalization.asp |website=Investopedia |first=Jason |last=Fernando |date=March 5, 2024 |access-date=February 25, 2025 }}</ref><ref>{{cite web|title=Definition of market capitalisation|website=Financial Times Lexicon |publisher=[[Financial Times]] |url=http://lexicon.ft.com/Term?term=market-capitalisation|access-date=February 19, 2013 |archive-url=https://web.archive.org/web/20160925030019/http://lexicon.ft.com/Term?term=market-capitalisation|archive-date=September 25, 2016 }}</ref>