A company's equity is determined by multiplying its common share price by the number of common shares outstanding. What is another term used to describe this?

Question

Quizplus · Accepted Answer

Market capitalization is the total value of a company's outstanding shares of stock, which is calculated by multiplying the common share price with the number of common shares outstanding. It reflects the market's perception of the company's value. The other choices are either incorrect or not commonly used terms to describe a company's equity.

A Company's Equity Is Determined by Multiplying Its Common Share