A company's total market capitalization is found by:
A) The quoted price of its shares divided by the number of shares in issue
B) The income stream in the future
C) The use of numbers drawn randomly from probability distributions
D) The quoted price of its shares times the number of shares in issue
E) The technique for minimizing the operating costs

Question

Quizplus · Accepted Answer

Market capitalization refers to the total value of a company's shares in the stock market. It is calculated by multiplying the company's share price by the number of shares issued by the company. Therefore, the correct option is D - The quoted price of its shares times the number of shares in issue. The other options - A) The quoted price of its shares divided by the number of shares in issue, B) The income stream in the future, C) The use of numbers drawn randomly from probability distributions, and E) The technique for minimizing the operating costs - are not related to the calculation of market capitalization.

A Company's Total Market Capitalization Is Found By