When the value of a company is determined by the trading price of its shares multiplied by the number of shares outstanding,this is referred to as
A)other comprehensive income.
B)share capital.
C)market capitalization.
D)contributed surplus.

Question

Quizplus · Accepted Answer

Market capitalization is the total value of a company's outstanding shares of stock, calculated by multiplying the trading price per share by the total number of shares outstanding. This is a common measure of a company's size and is often used to compare companies in the same industry. Other comprehensive income, share capital, and contributed surplus are all different accounting terms that are not related to market capitalization.

When the Value of a Company Is Determined by the Trading