What is market cap? (What Is Market Capitalization)
September 18, 2021
BSE
/ India
If you are new to the stock market, then you must have heard the term Market Capitalization many times – which is also commonly known as Market Cap. This is important data to be seen before investing or trading in any company, which affects the decision of every investor. So today in this post we will know what is Market Cap, how it is calculated, and why it is so important? What is the market cap? The market cap simply means the total market value. Which is calculated by multiplying the total number of outstanding shares issued by that company by the current running Actual Share Price. This shows the size of the company, with the help of which the investor can estimate the future potential and invest keeping in mind the risk and reward. For example: If currently the price of 1 share of Reliance is ₹ 200 and a total of 10,000 shares are issued by Reliance, then the total market cap of Reliance will be = ₹ 20 lakh (₹ 200 × 10,000) How is the market cap...