Market Capitalization

Market capitalization describes the total dollar value of all of a company's outstanding shares. It is calculated by multiplying the number of outstanding shares times the current market share price, which is often referred to as market cap. Prior to an IPO, market capitalization can be derived by estimating a company's future growth and by comparing a company with similar public or private corporations. Market capitalization determines a company's worth based on its outstanding shares in the stock market.

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