In order to determine market cap, the total market value of all shares of common stock outstanding of a company, an individual should:

Question

Quizplus · Accepted Answer

Market cap is calculated by multiplying the number of shares outstanding by the price per share. This gives an estimation of the total value of the company's equity that is available to investors. Looking at the total assets or net worth of a firm does not provide the same information as market cap, which specifically refers to the value of the company's publicly traded shares. Dividing the number of shares outstanding by the par value per share is unrelated to calculating market cap.

In Order to Determine Market Cap, the Total Market Value