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Finance Glossary

Just call us Bond. Amortized bond.

Over 700 finance terms, Shmooped to perfection.

Market Capitalization

Definition:

How much is a company worth? It's a big question. The IRS wants to know the answer so they know what to charge a company, and investors want to know so they know whether to sink their money into a specific business.

The market also places value on a company, which helps investors compare companies and securities. The market value of a company is known as market capitalization, and you can figure out this number by multiplying the number of shares outstanding by the stock price.