Stock Market
Beginner
Market Capitalisation
💡 In plain English: The total value of a company's shares — price × number of shares = what the market thinks the company is worth.
Definition
The total market value of a company's outstanding shares of stock.
📌 Real-World Example
A large-cap IT company has 3.6 billion shares outstanding. At ₹3,800/share, market cap = ₹13.7 lakh crore. That's how market capitalisation is calculated.
🔢 Formula
Market Cap = Share Price × Total Shares Outstanding
Related Terms
P/E Ratio (Price-to-Earnings)
How much you're paying per rupee of a company's earnings — a key...
Earnings Per Share (EPS)
How much profit a company made per share — the single most-watched...
Blue-Chip Stock
Shares of large, well-established companies with a long track...
IPO (Initial Public Offering)
When a private company sells shares to the public for the first...
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