Share Price
The market price at which a single share in a company can be bought or sold on the stock exchange, reflecting investor e...
Formula
Market Capitalisation = Share Price × Number of Shares Issued
Real World
When Meta reported disappointing user growth figures in February 2022, its share price fell 26% in a single day — wiping roughly $230 billion off its market capitalisation overnight.
Exam Focus
Link share price movements to consequences (e.g. takeover risk, cost of capital) rather than just stating it 'goes up or down' to access higher marks.
How well did you know this?