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19 October, 00:05

Which of the following accurately describes how market capitalization is determined?

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  1. 19 October, 00:08
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    The number of shares is multiplied by the price of each share

    Explanation:

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  2. 19 October, 00:32
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    Market capitalization (market cap) is the total market value of the shares outstanding of a publicly traded company; it is equal to the share price times the number of shares outstanding. As outstanding stock is bought and sold in public markets, capitalization could be used as a proxy for the public opinion of a company's net worth and is a determining factor in some forms of stock valuation.
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