Market capitalisation

Indicator of a company's current market value.

The market capitalisation is calculated by multiplying the current market price of a stock by the number of outstanding shares. Because an increase in a market capitalisation often implies a concomitant rise in the volume of shares traded, it serves as a measure for assessing the trading volume and the market liquidity of a company.

The market capitalisation of a stock exchange is equivalent to the total market capitalisation of all listed companies and is often an indicator of its size. The market capitalisation can be calculated for individual sectors or for the stock market as a whole.

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