1.What is Market Capitalization and How its Helps you

the bought share of stocks is called market capitalization. the capitalization is cap of the market. let’s say a certain stock has 10,000 shares of outstanding stock. then it is called as a market capitalization. so people who want to understand clearly. I just recommend you follow the definition and example of capitalization.

what is capitalization; what definition

when it comes to investing in stocks? the investor always wants to know the capitalization of the particular stock. to do this, you have to know the outstanding share of the stock.

some people don’t understand and ask about what you mean by outstanding share of the stocks. which means, the publicly traded company always releases a certain amount of shares of stocks.

when the organization releases a particular amount of share. the interested investor always will buy it. most investors are not able to buy all of the shares that are released by a certain industry.

so every small and big investor buys their desired part of the share based on their investment amount. so when the released share of the stocks is outstanding after being bought by all of the stock’s investors. then all balance shares, which are still not bought by investors are called outstanding shares of the stocks.

so now I think you will understand what is the outstanding share. next, this outstanding share is found in the 10k report of the company. which is released every year by every publicly traded company. the 10k report is also called an annual report of the industry.

on the other hand, if you know how many stocks are outstanding. then you can find the market capitalization by multiplying the outstanding common share of the stocks by the market price per share.

you can find the market per share by simply seeing the current market price. so now I think the people who come to our simplicity wrote an article for the first time. they understood clearly. what is market capitalization and how does it work?

so now let’s take a look with one example to make you more clear about this and to make you remember this market capitalization for lifetime use in stock market analysis.

what is the market capitalization of the Apple industry (example)

let’s say, you are the person who likes to buy the apple share of the stocks. and while analyzing the entire stock, you need to know the market capitalization of Apple stocks.

so to find it. you have to know the common share of the stocks. which means outstanding shares of the stocks. without knowing and calculating outstanding shares you can not find the market cap amount for Apple stocks.

so clearly, let’s take the Apple stocks to have the 100,000 outstanding shares. and you know the current market price of the stocks is 200 dollars. then what is the market capitalization? just multiply the outstanding 100,000 shares and the current market price of 200 dollars. There you will find a market cap of 20 million dollars

but here is the opposite;

some of the investing people want to know how I can know the common share of the stocks, without seeing the 10k report of the company.

simply just goes to any of the financial market service websites. find those stocks and look at the market cap amount.

divide that market cap amount by the current market price of the stocks. that’s where you will find the common share of the stocks (or) outstanding share of the stocks.

so now we believe that you are more clear about what is market capitalization, how it works, and how to calculate it. finally, if you have any more doubts about what is market capitalization. then don’t hesitate, feel free to contact us. we are here to help you.