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Market capitalization explained.

A company’s equity market value calculated from a share price and the relevant number of outstanding shares. It is different from revenue, assets, and enterprise value.

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Market capitalization

A company’s equity market value calculated from a share price and the relevant number of outstanding shares. It is different from revenue, assets, and enterprise value.

Example: Ten million fictional shares at $12 imply a $120 million equity market value.

Watch for: Using the share price alone to compare the sizes of two companies.

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