The figure given below shows the demand curves [D 1 and D 2 ] and the supply curve [S 1 ] of capital.Figure 17.1

-The product of the stock price and the total outstanding shares of that stock is referred to as:

Question

The figure given below shows the demand curves [D 1 and D 2 ] and the supply curve [S 1 ] of capital.Figure 17.1
 
-The product of the stock price and the total outstanding shares of that stock is referred to as:

Quizplus · Accepted Answer

Market capitalization is calculated by multiplying the stock price by the total outstanding shares of the stock. This gives an estimate of the total value of the company's equity in the market. Floating capital refers to the shares of a company that are available for trading in the market, while book value is the value of a company's assets minus its liabilities. Financial value and face value are not relevant to the calculation of market capitalization.

The Figure Given Below Shows the Demand Curves [D1 and D2]

The Figure Given Below Shows the Demand Curves [D₁ and D₂]