Market Capitalisation
The total market value of all a company's issued shares: Share Price multiplied by Number of Shares in Issue.
Formula
Market Capitalisation = Share Price × Number of Shares in Issue
Real World
When Apple became the first company to reach a $3 trillion market cap in 2022, it reflected investors' confidence in its future earnings, not just current assets.
Exam Focus
In calculate questions, show the formula explicitly — marks are awarded for method even if the final figure is wrong.
How well did you know this?