GENERAL KNOWLEDGE

GK

BANKING AWARENESS AND SEBI

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
What is the product of the share price and number of the company’s outstanding ordinary shares?
A
Market Price
B
Market Trend
C
Treasury Stock
D
Market Capitalization
Explanation: 

Detailed explanation-1: -Market cap-or market capitalization-refers to the total value of all a company’s shares of stock. It is calculated by multiplying the price of a stock by its total number of outstanding shares.

Detailed explanation-2: -Shares outstanding refer to the number of shares of a company held by all of its shareholders. Shares outstanding is a component of market capitalization, which is the total number of shares outstanding multiplied by the current share price of a single share.

Detailed explanation-3: -To calculate market cap, you take the total number of a company’s shares outstanding and multiply that figure by the company’s current stock price. For example, if a company has 5 million shares outstanding and its current stock price is $20, it has a market capitalization of $100 million.

Detailed explanation-4: -Market Capitalization formula = Current Market Price per share * Total Number of Outstanding Shares. To use the Market Cap. It is computed as the product of the total number of outstanding shares and the price of each share.

There is 1 question to complete.