Investing in Stocks
How is market capitalization calculated?
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Market capitalization is the share price multiplied by the number of common shares issued, and it represents the total value of the company's equity as valued by the market.
It is often used to compare the size of companies, and the market capitalization of all listed companies is sometimes added up to compare the size of stock markets. However, because it does not reflect debt, it may differ from the value of the company as a whole or from its book equity.
This answer is general financial information as of 14-10-2026, not investment advice. Rules and tax rates change, so please also check the latest guidance from the source institution.
