Market Capitalisation (Noun)
Meaning
An estimation of the value of a business that is obtained by multiplying the number of shares outstanding by the current price of a share.
Classification
Nouns denoting acts or actions.
Examples
- The company's market capitalisation increased significantly after the announcement of the merger with its rival firm.
- Market capitalisation is an important metric used by investors to evaluate the size and growth potential of a company.
- The market capitalisation of the tech giant has been steadily rising over the past year, driven by strong demand for its products.
- Analysts use market capitalisation as a benchmark to compare the relative size and performance of companies within the same industry.
- The company's market capitalisation plummeted after the release of its disappointing quarterly earnings report, which fell short of investor expectations.