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16. What Does Market Cap Mean? episode artwork

Nov 7, 2022 12 min

16. What Does Market Cap Mean?

from Outcome Becomes Income Hosted by Outcome Becomes Income

We hear a lot of terms used in investing, but we don’t always know which ones are useful and what they mean. One term we offer hear is “Market Cap” which is short for market capitalization. This is the total value of a publicly traded company's outstanding common shares owned by stockholders. Market capitalization is equal to the market price per common share multiplied by the number of common shares outstanding. We can use the market cap to do some back of the envelope math to value a company compared to its peers and if the company has room to grow. Tune in to find out more. Thank you for listening!

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16. What Does Market Cap Mean?

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