Stock Market
Exchange where company shares are traded.
Formula
Market Capitalisation = Share Price × Number of Shares Issued
Real World
When Facebook (Meta) launched its IPO on the NASDAQ in 2012, it raised $16 billion, giving it access to enormous capital for acquisitions such as Instagram and WhatsApp.
Exam Focus
Remember an IPO dilutes existing ownership — mention loss of control as a trade-off in any evaluation question.
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