Market Capitalization

Market capitalization (often shortened to "market cap") is the market value of a company i.e. what you would have to pay to buy the whole company. The market capitalization of a public company is the share price multiplied by the number of shares outstanding. You can find a company’s market cap on any financial information site e.g. http://finance.yahoo.com/.

“Market cap” gives an indication of how successful a company is – large firms with high profits have high market caps. For example, in November 2009 Barnes & Noble's market cap was about $956 million. Amazon.com's market cap was around $54.6 billion.

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