Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › market capitalisation
- This topic has 5 replies, 2 voices, and was last updated 3 years ago by John Moffat.
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- November 7, 2021 at 8:33 am #640105
a company which is a listed company , will have its market capitisation exposed to
the general public?November 7, 2021 at 3:05 pm #640162Yes. The market value per share is published each day in the newspapers, and the number of shares is available. (The market capitalisation is the number of shares x the MV per share.)
November 8, 2021 at 4:01 am #640197Good morning
Market capitalization is the total dollar value of all of a company’s outstanding shares.
So
Can we come to a sense that
When market capitalization is lower , the shareholders of that company have not invested much …November 8, 2021 at 7:41 am #640210No, it does not mean that at all.
The current share price is nothing to do with how much was originally invested. The market value of shares goes up and down depending on how well or badly the company is performing, and therefore the market capitalisation goes up and down as well.
November 8, 2021 at 4:59 pm #640232so how can we acknowledge that a market capitalization is good sir ?
November 9, 2021 at 3:01 pm #640282We can’t and we don’t!
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