Home
IU

What is market cap, and is it important?

Market capitalisation, also known as market cap, is a measure of the size of a publicly traded company. It is calculated by multiplying the number of shares outstanding by the current market price of a single share. For example, if a company has 1 million shares outstanding and the current market price of a single share is $50, the company’s market cap would be $50 million.

Market cap is an important consideration for investors because it can give an indication of a company’s size and the level of investor interest in it. Companies with higher market caps may be seen as more stable and less risky investments, while smaller companies with lower market caps may be seen as more risky but also potentially offering higher returns if they are successful.

However, it is important to note that market cap is just one factor to consider when evaluating a potential investment. Other factors such as a company’s financial performance, industry outlook, and management team can also be important considerations.

“The greatest enemy of a good plan is the dream of a perfect plan.” – John C. Bogle

sc name=”fma-cta”]

BLOOMBERG GLOBAL NEWS

Bloomberg video news feed with live charts, watchlists & fundamentals
Audio/video feed with live charts, watchlists & fundamentals
CHARTS + FEED

RBA ECONOMIC UPDATES

Periodic updates on the Australian economy, direct from the RBA, with live charts, watchlists & fundamentals
Audio/video feed with live charts, watchlists & fundamentals
CHARTS + FEED

US FEDERAL RESERVE UPDATES

Bloomberg News focussed upon the Federal Reserve, with live charts, watchlists & fundamentals
Audio/video feed with live charts, watchlists & fundamentals
CHARTS + FEED

FX/GLOBAL BRIEFS

Brief global updates with a focus upon currencies, with live charts, watchlists & fundamentals
Audio/video feed with live charts, watchlists & fundamentals
CHARTS + FEED

ASX MARKET UPDATES

ASX-focussed updates, with live charts, watchlists & fundamentals
Audio/video feed with live charts, watchlists & fundamentals
CHARTS + FEED

BLOOMBERG BRIEFS

Global briefs from Bloomberg with live charts, watchlists & fundamentals
Audio/video feed with live charts, watchlists & fundamentals
CHARTS + FEED