Market Capitalization (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 market capitalization of the company skyrocketed after it went public, exceeding investor expectations and reaching record highs.
- Calculating market capitalization helps analysts assess the company's financial health and overall size in relation to competitors.
- With its significant increase in stock price, the market capitalization of Tesla made it one of the top-ranked electric vehicle companies worldwide.
- Estimating a startup's market capitalization often proves to be an unpredictable challenge, considering variables like its cash burn rate and speculative industry forecasts.
- Stock analysts reviewed various company fundamentals and assessed their corresponding market capitalizations before suggesting well-timed purchases.