Question

    What is meant by the term "market capitalization" in

    equity markets?
    A The total value of a company's outstanding debt. Correct Answer Incorrect Answer
    B The total value of a company's outstanding equity shares, calculated by multiplying the share price by the number of outstanding shares. Correct Answer Incorrect Answer
    C The total value of a company's assets minus its liabilities. Correct Answer Incorrect Answer
    D The market value of a company's bonds. Correct Answer Incorrect Answer
    E The value of all preferred shares issued by a company. Correct Answer Incorrect Answer

    Solution

    Market capitalization refers to the total market value of a company's outstanding shares of stock, which is calculated by multiplying the current share price by the total number of outstanding shares. It is an important metric for assessing the size and value of a company in the equity markets.

    Practice Next
    More Financial Management Questions

    Relevant for Exams:

    Hey, Don't leave. If you have any queries regarding any exam let us know here.

    ask-question