Market Capitalization: CNBC Explains
A company’s market capitalization, also known simply as “market cap”, is an indication of how much that company is worth on the open market. How do you compute a company’s market capitalization? How does it differ from the book value? Using two hypothetical examples, Salman Khan of the Khan Academy explains.
From this video, you’ll understand:
- How market capitalization is determined
- How a company’s market cap differs from book value explains.